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MONEY SUPPLY IN NEW ZEALAND (Note. —For technical reasons this analysis is based on values as at the last Monday in March of each year, instead of 31st March) The following tables set out in detail the changes that have occurred in the amount of money in circulation in New Zealand in the form of coin, notes, and demand deposits of the Reserve Bank and the trading banks since 1939 : —

Volume of Money in Circulation in New Zealand in the Form of Coin, Notes, and Bank Demand Deposits* (Last Monday in March) Volume of Money

Causes of Changes in Volume of Money

Changes in Volume of Money 1939-45. Coin (estimated) .. .. .. .. .. .. .. +1-2 Notes held by public .. .. .. .. .. .. +23-0 Demand deposits at — (a) Reserve Bankf .. .. • • .. .. +12 -7 (b) Trading banks:!; .. . . .. . . , . .. +55 • 3 Total .. .. .. .. .. .. .. +92-2 Causes of Changes in Volume of Money 1939-45. Overseas transactions§ .. .. .. .. .. .. +56 • 0 Bank creditReserve Bank— Advances .. .. .. .. .. .. .. +10-2 Investments in New Zealand .. .. .. .. .. +6-8 Trading banks— Advances .. ~ .. .. .. .. .. —0 ■ 4 Investments .. .. .. ~ .. .. +21 • 3 Shift from time to demand deposits at trading ban ks|| .. .. .. —1-0 Other items .. .. .. .. .. .. ~ —€ • 7 Total .. .. .. .. .. .. .. +92-2 Notes, * Excludes deposits held at savings-banks. t Government and other demand deposits at Reserve Bank, excluding trading banks' balances at Reserve Bank, j 1.e., Trading banks' total demand liabilities in New Zealand. § Changes in Reserve Bank's sterling exchange and overseas investments and trading banks' assets overseas in respect of New Zealand business, less overseas liabilities. Plus sign indicates that overseas exchange Receipts exceeded disbursements, and minus sign indicates an excess of disbursements. || Minus sign indicates shift from demand to time deposits.

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(£(N.Z.) millions) 1939. 1940. 194J. 1942. 1943. 1944. 1945. - - • j Coin (estimated) .. .. 1-4 1-6 1-7 1-9 2-2 2-5 2-6 Notes held by public .. .. 13-2 14-8 17-2 20-2 26-2 31-2 34-2 Demand deposits at — (а) Reserve Bankf • • .. 4-8 6-9 7-2 13-7 15-9 19-0 17-5 (б) Trading banksj .. .. 38-4 46-6 53-7 61-5 77-1 85-1 93-7 Total.. .. .. 55-8 69-9 79-8 97-3 121-4 137-8 148-0 Change during year .. +14-1 +9-9 +17-5 +24-1 | 16-4 +10-2

1939-40. 1940-41. 1941-42. 1942-43. 1943-44. 1944-45. Overseas transactions§ .. .. .. +12-9 +8-0 +1*1 +6-0 +3-4 +24-6 Bank credit — Keserve Bank— Advances .. .. ... .. +2-7 -3*7 +12-2 +1-8 +11-8 -14-6 Investments in New Zealand . . .. +0-3 — 0-6 +0-4 +6-5 +0-4 —0-2 Trading banks— Advances .. .. .. .. -7-4 +5-5 -4-1 -4-7 +2-0 +8-3 Investments .. .. .. +6-5 —0*8 +8 • 7 +12-7 +1*2 —7*0 Shift from time to demand deposits at trading banks|| .. .. .. .. -1*4 +2-6 +0*2 —0-1 1*2 —1*1 Other items •• •• •• +0*5 —1*1 —1-0 +1*9 —1*2 +0-2 Change during year .. .. +14*1 +9-9 +17*5 +24-1 +16*4 +10*2