Thursday, 31 January 2013

Norwegian Base Money Increases, Money Supply Drops (Dec-12)

Base Money in Norway increased 2.41% in December 2012 compared to the previous month while M1 and M2 Money Supply decreased 1.58% and 0.13%, respectively. This represented the first decline in money supply for four months according to the numbers released today by Statistics Norway.

Compared to December 2011, base money decreased 39.36%, the biggest YoY drop since February 2010, while M1 and M2 money supply were up 2.15% and 3.71%.

The longer term trends (12 month average YoY percentage growth) show a decrease in base money by 13.09%, 3.83% increase in M1 and a 4.12% increase in M2.

A noteworthy feature of base money in Norway is that it changes rapidly on a monthly basis. For example, the average monthly percentage change since 1995 is 2.5%. This compares to an average of 0.9% for the U.S. money base for the same period. See bottom chart.

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