The strong pace of growth in both broad money and bank loans is another reason to believe that the temporary bout of negative inflation, which almost certainly began last month, will not develop into an adverse debt-deflation spiral. Both M2 and our measure of M3 are growing at a 6% annual pace.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services