The Bank of England’s Ben Broadbent used a speech today (April 25) to challenge the notion that money supply growth could be to blame for the recent surge in inflation.
The deputy governor said there was little evidence of a link between quantitative easing and the broad money supply, M4. Furthermore, growth of M4 does not appear to be associated with periods of high inflation, he added.
Broad money growth was rapid during the first 15 years of inflation targeting in the UK, a period of low
