asked the Minister for Finance if he will state and itemise the total money in circulation at a corresponding time each year over the past decade.
31.
Ceisteanna—Questions. Oral Answers. - Monetary Circulation.
30.
asked the Minister for Finance how the velocity of monetary circulation has varied over the past decade; and on what basis his returns are calculated.
With your permission, a Cheann Comhairle, I propose to take Questions Nos. 30 and 31 together.
The reply is in the form of a tabular statement which, with your permission, a Cheann Comhairle, I propose to circulate with the Official Report. For the purposes of the reply total money supply has been defined as the sum of currency in issue and credit amounts in current accounts at the Associated Banks. The figures given relate to the ten years 1960 to 1969, the latter being the latest year for which the necessary particulars are available.
Following is the statement:
Total Money Supply and Velocity 1960-69
|
Year |
Currency in issue(a) |
Credit Amounts on Current Accounts at the Associated Banks(b) |
Total Money Supply (1+2) |
GNP at Current Market Prices |
Velocity of money (4÷3) |
|
(1) |
(2) |
(3) |
(4) |
(5) |
|
|
£ millions |
|||||
|
1960 |
73.4 |
121.7 |
195.1 |
676.1 |
3.47 |
|
1961 |
77.9 |
129.8 |
207.7 |
727.1 |
3.50 |
|
1962 |
82.7 |
140.8 |
223.5 |
783.8 |
3.51 |
|
1963 |
88.7 |
156.6 |
245.3 |
839.7 |
3.42 |
|
1964 |
98.8 |
179.4 |
278.2 |
951.6 |
3.42 |
|
1965 |
104.4 |
188.5 |
292.9 |
1,019.7 |
3.42 |
|
1966 |
110.3 |
205.4 |
315.7 |
1,073.9 |
3.40 |
|
1967 |
115.6 |
214.1 |
329.7 |
1,173.5 |
3.56 |
|
1968 |
123.7 |
232.7 |
356.4 |
1,334.4 |
3.73 |
|
1969 |
131.5 |
245.0 |
376.5 |
1,504.0 |
4.00 |
(a) An average of weekly Friday figures.
(b) An average of monthly figures.
NOTES:
The velocity of money has been calculated by dividing gross national product (GNP) at current market prices by the total money supply. As shown in the table velocity rose from 3.47 in 1960 to 4.00 in 1969, viz., an increase of 15 per cent over the period. The range of variations was from a low of 3.40 to 4.00 in 1969. Figures for total money supply for 1970 are not available due to the bank dispute and necessary data are not yet available for 1971.
The data for currency in issue are compiled from Central Bank records and those for Associated Bank current accounts are compiled from the monthly returns submitted by these banks to the Central Bank. Figures for the non-associated banks are not included but as the total amount in current accounts in these banks has never exceeded £20 million their exclusion has no significant effect on the velocity figures.