The money supply M2, November 2008

The money supply amounted to NOK 1 489 billion at end-November, down from NOK 1 500 billion at end-October. After a rise in previous month the money supply growth drops again.

Negative money supply growth in non-financial enterprise

Non-financial enterprise money supply amounted to NOK 507 billion at end-November. The twelve-month growth was -0.9 per cent, down from 0 per cent to the previous month. The twelve-month growth rate has not been lower since August 2002. Apart from April the growth rate was decreasing through the whole 2008 from at 21.3 per cent at the beginning of the year. Non-financial enterprise money supply constituted 42 per cent of their gross domestic debt measured by the credit indicator C2 at end-November.

Declining growth for other financial enterprise money supply

The twelve-month growth for other financial enterprise money supply (other than state lending institutions, banks and money market funds) was 29.2 per cent in November down from 32.5 per cent in October. Other financial enterprise money supply amounted to NOK 155 billion at end-November.

Municipal government pulls up the growth

The municipal sector contributed to pull up the growth in total money supply. The twelve-month growth was -1.2 per cent, up from -4.2 per cent in the previous month. Municipalities’ money supply amounted to NOK 51 billion at end-July.

Composition of money supply

The broad monetary aggregate M2 amounted to NOK 1 489 billion at end-November, of which the major part (89 per cent) consisted of bank deposits. In comparison, notes and coins only accounted for 3 per cent of the broad money. The rest of the broad money mainly consisted of shares in money market funds (7 per cent), while certificates of deposits accounted for 1 per cent.