In Australia?s monetary debasement & credit expansion, we showed you a graph of Australia’s (1) money supply growth (base money, M3 and broad money) and (2) the relativity between standard and fiduciary money since July 1959 to October 2007 (see Are we heading for a deflationary type of recession? for the meaning of standard and fiduciary money). Today, we have an update of the November 2007 figures from the Reserve Bank of Australia (RBA).
The picture does not look good.
In the month to November 2007, the M3 money supply grew another 2.7%. In the year to November 2007, M3 grew at 23%! The standard money to the broadest fiduciary money ratio deteriorated further to 3.7% in that month.
It looks that up till November 2007, Australia’s monetary policy is still loose (see What makes monetary policy ?loose? or ?tight??).
