money supply

Danny Gabay, a director at Fathom Consulting in London, says that the world banking crisis is not over yet and the recovery of the global economy is not guaranteed. Echoing this view other analysts on Monday expressed their fear of a double-dip recession and slow growth.

Gabay still supports his forecast for gradual recovery led by the US and Asia, but he says that risks are becoming far uglier and collectively more likely forcing investors to walk a tight rope.

According to senior central bank researcher’s Monday statement, as money supply growth accelerated over the recent months China's economy is on the verge of overheating again.

Jiao Jinpu sees the rapid rise in the more narrow measure of money supply, M1, in recent months as an indication that money is flowing at a faster pace. That measure grew 34.6% in November from a year earlier, compared with 29.7% for the broad M2 measure.