But.. M4 is not money printing. M4 is the counterpart to M4L which is the driver ofmoney creation. Money in the UK is primarily created by commercial banks [1].

But.. M4 is not money printing. M4 is the counterpart to M4L which is the driver ofmoney creation. Money in the UK is primarily created by commercial banks [1]. Inflation is indeed amonetary phenomenon, to re-hash Friedman. Unfortunately for this quote the world has more nuance: The quantity of M2L excluding OFCs can work as a forward indicator to inflation, especially as it's more timely than CPI data. Sometimes. It depends what's happening to velocity too. The 1980s showed the breakdown in causality between broader forms of money and inflation. To return to that policy would be a disaster. But why would you compare it to a stock index? Stock is didcounted by interest rates. When rates change so does the discounting factor. That's only one problem with this apples to grapes comparison. [1] https://www.bankofengland.co.uk/quarterly-bulletin/2014/q1/money-creation-in-the-modern-economy https://www.bankofengland.co.uk/quarterly-bulletin/2014/q1/m...