Money Supply versus House Prices, and general Price Inflation
Money Supply versus House Prices, and general Price Inflation

A couple of days ago I picked up on a report from the Times and Bloomberg about growth in M4 money supply. I’ve been trying to do a little research on relative growth of different types of assets and the money supply and retail prices.

I don’t know if this chart makes any sense, but I found figures from various sources for M0 and M4 (from the Bank of England statistics service), for house prices (from the Department of Communities and Local Government), for Retail Prices (from the National Statistics Office) and for the FTSE Actuaries All Share Index (from Finfacts.com an Irish financial statistics organisation) most of which can go back to the late sixties.

I rebased all of them to start from 100 in all but one case in Q2 1968 (M0 I could only find from Q2 1969) and charted the results. No doubt something is glaringly wrong and people will soon yell at me what it is. I need to add GDP growth and one or two other things as well. But for now I thought I’d let people see what I had come up with so far.

Money Supply, House Prices, Stocks Exchange Assets, Prices
Tagged with: