Comments on: ABC PM tonight–major policy shift by New Zealand RB? http://www.debtdeflation.com/blogs/2007/05/09/abc-pm-tonight-major-policy-shift-by-new-zealand-rb/ Analysing the Global Debt Bubble Tue, 06 Jan 2009 07:00:35 +0000 http://wordpress.org/?v=2.7 hourly 1 By: foundation http://www.debtdeflation.com/blogs/2007/05/09/abc-pm-tonight-major-policy-shift-by-new-zealand-rb/comment-page-1/#comment-112 foundation Wed, 09 May 2007 22:39:51 +0000 http://www.debtdeflation.com/blogs/?p=21#comment-112 Could it be that the Bank of England also recognise the need for some form of credit control beyond moderating demand with interest rates? From Reuters: "King gives money growth warning Thu May 3, 2007 7:51 AM BST15 By Christina Fincher LONDON (Reuters) - Changes in money and credit growth may flag the need for interest rate changes faster than other economic indicators do, Bank of England Governor Mervyn King said on Wednesday. In a speech to mark the 10th anniversary of the central bank's independence, King identified better analysis of monetary indicators a key challenge for the future and said it planned to devote more resources to this area. The usefulness of money indicators to gauge inflationary pressures divides members of the bank's Monetary Policy Committee, but King has recently put increased emphasis on the link. "The practical problem facing all central banks is how to distinguish between shocks to the demand for money and shocks to its supply," said King. "After a period of rapid financial innovation during which shocks are predominantly to the demand for money, it is understandable, though unfortunate, if monetary developments are given insufficient attention in the analysis of the inflation outlook," he added." Full text here: http://tinyurl.com/28rudc Could it be that the Bank of England also recognise the need for some form of credit control beyond moderating demand with interest rates? From Reuters:

“King gives money growth warning
Thu May 3, 2007 7:51 AM BST15

By Christina Fincher

LONDON (Reuters) - Changes in money and credit growth may flag the need for interest rate changes faster than other economic indicators do, Bank of England Governor Mervyn King said on Wednesday.

In a speech to mark the 10th anniversary of the central bank’s independence, King identified better analysis of monetary indicators a key challenge for the future and said it planned to devote more resources to this area.

The usefulness of money indicators to gauge inflationary pressures divides members of the bank’s Monetary Policy Committee, but King has recently put increased emphasis on the link.

“The practical problem facing all central banks is how to distinguish between shocks to the demand for money and shocks to its supply,” said King.

“After a period of rapid financial innovation during which shocks are predominantly to the demand for money, it is understandable, though unfortunate, if monetary developments are given insufficient attention in the analysis of the inflation outlook,” he added.”

Full text here:
http://tinyurl.com/28rudc

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