Australian money supply – consumers still borrowing

Posted on 01 March 2010

The money supply, as measured by M3, has found some legs (though it’s growth rate remains below the long term trend):

As noted earlier (see Household debt to GDP ratio), it’s the retail market that has been merrily running up the credit aggregates. On the other hand, business continue to deleverage – at a slowing rate – with total debt now 10% lower than it’s peak in Nov 2008. It’s all the government can do to step into the breach – another global trend.