Thursday, May 4, 2017

BoE Balance Sheet


Well you can see why UK GDP growth fell to only 1.2% in 2012:




Anybody have a more recent chart?

12 comments:

Neil Wilson said...

The rough data is available weekly.

http://www.bankofengland.co.uk/publications/Pages/weeklyreport/default.aspx

Matt Franko said...

Thx Neil, looks like up about 100B GBPs in the last 6 months.....

Hence rate of growth down over there again... same here in US...

Bob Roddis said...

Mr. Franko:

So are you saying that under MMT, the path to prosperity is unsustainable and prone to collapse absent regular new shots of fiat funny money into the system?

Matt Franko said...

No Mr Roddis I am saying that if the CBs do large scale asset purchases the depository institutions have to offset the new reserve assets by shedding/retarding growth in other asset classes...

Ralph Musgrave said...

"Funny Money" Roddis will be disappointed to learn that in a perfectly functioning free market, market forces would automatically increase the amount of funny money.

That is, in a perfect market and given a recession, wages and prices would fall, which would increase the real value of each "money unit" (dollars in the US), which in turn would increase private sector net financial assets, which in turn would increase spending (i.e. aggregate demand). Whether the monetary base is gold or whether it comes in fiat form makes no difference: in both cases the value of private sector financial assets rises.

Of course the latter mechanism doesn't work too well in the real world because as soon as any employer tries to cut wages, one gets strikes, riots, etc. Or as Keynes said, "Wages are sticky downwards".

Bob Roddis said...

in a perfect market and given a recession, wages and prices would fall

In a “perfect market” there would be no artificial credit creation and thus no unsustainable price, investment and capital structure. There would be no recession where unsustainably high wages and prices would fall because there would be no unsustainable high wages and prices. There would be no artificially stimulated boom followed by the inevitable bust where an unsustainable boom price and wage structure collapses.

Keynesianism exists to solve the problem that does not exist. The problems that do exist are caused by Keynesianism and artificial credit expansion.

Tom Hickey said...

there would be no artificial credit creation

Are you assuming a bullion exchange system?

Bob said...

There is no Easter Bunny in Bob Roddis' world.

Matt Franko said...

The busts happen because the CB doesn't coordinate with the depository institutions on capital requirements...

Watch what happens if Canada does QE in response to their current otherwise manageable issues...

Steve D said...

'Keynesianism...expansion." Straw man argument...credit cycles have existed since like, forever, Mr. Funny.

Noah Way said...

The busts happen because the CB doesn't coordinate with the depository institutions on capital requirements...

The busts happen because the government is run by Wall Street insiders who prohibit legislative regulation that would prevent massive greed and corruption from creating "profit opportunities" through continuous cycles of pump and dump with socialized losses and privatized profits.

Bob Roddis said...

Matt Franko wrote: The busts happen because the CB doesn't coordinate with the depository institutions on capital requirements...

What about Steve Keen’s work on excessive “private” credit and debt? He is right? Is he wrong?