RSS feedM2
’Found: China’s missing M2
Remember China’s missing M2?
Wei Li and Stephen Green at Standard Chartered began pointing out in March that China’s official measure of this type of money supply wasn’t reflecting reality, due to some accounting rule changes.
China’s new, wider, financing measure
Back in February, the People’s Bank of China’s Sheng Songcheng was busy arguing that “society-wide financing” could act as a better guide for monetary policy than new bank loans. Just two months later and the first step towards that process — creating a new financing measure — is here.
The Chinese time deposit conundrum
This is interesting from BNP Paribas on Monday:
As explained, the chart shows Chinese deposit holders seemingly getting more yield-focused in 2011, shifting current account and demand deposits into higher yielding time deposits.
China’s missing M2
Have you seen China’s missing M2 monetary measure?
The thing seems to have gone missing, at least in its old form, from its past two iterations. According to the latest data from the People’s Bank of China,
[Wilmot's PMI tour] Shadow money and inflation
Two years on from Lehman’s spectacular demise, global investors’ expectations for future US inflation are – still – all over the map, or at least fabulously fat-tailed.
Some fear runaway inflation;
China’s little problem with unspent cash
There’s a bit of an interesting situation developing in Chinese public finance.
According to analysts at Standard Chartered, based on current trends, the government’s revenues could fall short of expenditures by only CNY300-500bn,
Borrowed in China
Here’s quite a glaring chart from Standard Chartered depicting M2 expansion rates from around the world:
What do StanChart’s analysts make of it? Well, they suggest it’s actually an example of the most effective monetary easing in the world.