Please note that, purportedly because of demand for physical currency, there is a significant distortion around the
Chinese New Year.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg9nRvjr1pf9lbOcm8dgycFjFTuk8_YCSfWo8Rwt4tpwXu8SrSpeVAe5KAu8-JX8txEGE7c5XhOHwg539YrDr-aV3CIon8WuX4RMnjGnZP9qH4RSj-x1WcqqV4BaqE2YJivAqqcKtTaAN86/s400/china-nominal-ms.png) |
Nominal money supply numbers as reported by the People's Bank of China. |
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgcIdcrCXcwKKMznqKjzY6e0GTdwwG616455pqvvGWeXoWJpEt72pyQqsyyVJO6_hBzGAUDFU6LEfJcUogLmpqifoH2fB1SeAsvjVAR3mDfYFqezzlZlzOgHbk-c_HyMFsVaeGY1RDC5ehb/s400/china-gdp-ms-growth.png) |
Indexed growth of the money supply compared to growth in GDP (2005=100) |
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![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjuchmfhtooKt-UBMrsFcxIAm0s122F8QCoEVaNwBG1NkjVEGzF1qL83nxNMAhVazjpLTcoj3H6L9DU0iyC7rPa7BlK5xR_C4HXaMDG1Ut7nZPy44-3JbG6zmewrtikWfalDgg6FzJ42cGe/s400/china-velocity.png) |
Velocity of M1 and M2 |
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OK, the Velocity I kept checking and checking and it seems to be right. Isn't a velocity of ~.5 kinda slow? The numbers are right, but something seems off. I know the the GDP / M2 calculation is crude, but the GDP numbers get huge revisions anyway, so it's just to get an idea. Leave me a comment if you have any insight on this one.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgfClQyx3-dlfmZQZBF_dMCL9uWu5Ec0ujxphYsHdIQJmKOyeNbNexCYs0EHSFW1TXJPVWkBjskEG3Y-UJzHhcWGLH26RkZxIU2SS_BtuoVokaDmTYixdDklH9zsbjXIE90osIPyzX6Oelo/s400/china-gdp-nominal.png) |
Quarterly contributions to nominal GDP |
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjxkdObVAFQ7apru7KIcsOTAJozeSe3xuhyphenhyphenu5pAgQd6yWwJjW5zNhz6dJBgL-_P82QtzCfbuZSySGRV5LysSOX_E6K9v-w83sxdLGzqFNNxZv-8w5PQt5pj0oP7jP2McuWNBN35uw4Y-Zm0/s400/china-quarterly-gdp-breakdown.png) |
Industry contributions to nominal quarterly GDP |
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjx7CeCynwN6cV5ysll5PKvOjCRSiisKjmAI2nFQii7L-MLfbz26iS4xrn9HHatsZ_xmbEKEewjVTMCYgDqmZKzrO35o50Q1RHjUoGZ_dsrQvvNKHSNzyXbBosI21tlBGCkGAp-KwuGK4f7/s400/china-yoy-ms-growth.png) |
Year-over-year growth in money supply and GDP |
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