This is available from 1997 and projected backwards using aggregate M4 growth before then. Chart 2: Broad money growth slowed significantly after the financial crisis, inflation still close to 2%  Page 5  Sources: ONS, Bank of England and Bank calculations. None of this means that at the margin (holding everything else fixed) QE doesn’t add to broad money or ultimately to the level of prices. Nor does it imply that the quantity measures are never useful or important. It would be as wrong categorically to ignore monetary aggregates as it would to assume that they’re the only thing you need to consider. As far as the theory’s concerned, people can’t always borrow and lend freely. In the presence of these and other “financial frictions” the availability of liquid assets can matter for spending, independently of interest rates. Besides, interest rates themselves matter only relative to some “neutral” rate that cannot be observed directly. So, in practice, monetary policymakers should always pay attention to other – indeed any – indicators of incipient inflationary pressure. And although changes in banks’ deposits have often been driven by shifts in demand there are times when they look more supply-led. Arguably, the surge in broad money in 2020 looks like one such episode. Supported by the furlough scheme, and because their spending was held back by the lockdowns, households accumulated significant deposits during the pandemic (Chart 3). While not literally a “helicopter drop” this came quite close to an exogenous increase in the stock of household (and aggregate) money.
Pay Power Speech given by  Andrew G Haldane Chief Economist Bank of England Acas “Future of Work” Conference Congress Centre, London 10 October 2018  The views expressed here are not necessarily those of the Bank of England or the Monetary Policy Committee. I would like to thank Will Abel, Shiv Chowla, Tomas Key, Brad Speigner and Ben Stokes for their help in preparing the text. I would like to thank Ben Broadbent, Clare Macallan, Becky Maule, Mette Nielsen, Silvana Tenreyro and Jan Vlieghe for their comments and contributions. This work contains statistical data from ONS which is Crown Copyright. The use of the ONS statistical data in this work does not imply the endorsement of the ONS in relation to the interpretation or analysis of the statistical data. This work uses research datasets which may not exactly reproduce National Statistics aggregates. 1  All speeches are available online at www.bankofengland.co.uk/speeches  It is great pleasure to be here at the Acas Annual Conference whose theme this year is the “Future of Work”. It is a particular pleasure to have Brendan Barber as Chair. As a member of the Bank of England’s Court between 2003 and 2012, Brendan’s insights on the labour market and wider economy were crucial in helping the Bank steer a policy course through a period of first macroeconomic calm and then extra-ordinary macroeconomic storm following the global financial crisis. It is the labour market that I want to discuss today.