10  BIS Review 149/2007  ANNEX Chart 1: Money mentions(a) in MPC minutes and money growth M entions  6m-o-6m (ann) M oney mentions  2 1.8 1.6  14  M 4 growth  iloan D(2)  CD(3)  C  12  CS(1)  CD(1)  10  1.4 1.2 1 0.8 0.6 0.4 0.2 0 1997  Diagram A: Shifts in both supply of credit (CS(1)→ CS(2)) and demand for credit (CD(1)→ CD(2)/ CD(3))  8 6  il(2) il(1)  CS(2) F  A  E  C1  C2  il(2)  4 2  1999  2001  2003  0 2007  2005  C3Credit  Note: (a) number of mentions on “money” in “Immediate policy decision” section of MPC Minutes Source: Bank of England  Diagram B: Shift in supply of credit (CS(1)→ CS(2)), unchanged demand (CD)  Chart 2: Total credit to UK households  iloan  £ billions 1600  CD  1400  Total lending to individuals  1200  CS(1)  1000  A  il(1)  B  800  CS(2)  600  il(2)  400 Bank and building society credit  200 0  C1  Credit  C2  1987  1991  1995  1999  2003  2007  Source: Bank of England, ONS  Chart 3: Total credit to UK private nonfinancial companies £ billions 4000  Chart 4: Shares of total lending to UK households Percentage of total lending to households  Non-bank lending Bank lending  100 90 80 70 60 50 40 30 20 10 0  3500 3000  Total financial liabilities  2500 2000  Total lending to PNFCs  1500 1000  PNFCs' M4L 500 0 1987  1991  1995  1999  Source: Bank of England, ONS  BIS Review 149/2007  2003  2007  1993  1997  2001  2005  Source: Bank of England, ONS.
There is scope to run a countercyclical fiscal deficit through the operation of automatic stabilisers on tax revenues and transfer payments in the event of a severe downturn. Moreover, there is some scope for temporary investment to support trade routes after the UK’s departure and temporarily help hard-hit sectors adjust to new realities.