63. Mr. De la Bèreasked the Chancellor of the Exchequer whether he will make a further statement as regards the question of the official monetary policy which it is the intention of the Government to pursue; and whether it is the intention of the Government to pursue a policy not only of active but progressive deflation?
§ Sir J. SimonI can assure my hon. Friend that the Government are not pursuing, and do not intend to pursue, a policy of deflation, whether active or progressive or otherwise. I cannot add to the statements on the subject which I have already made.
Mr. De la BèreIs my right hon. Friend aware that during the last two months there has been a policy which borders on inflation and is it not true to say that the Bank of England, the Treasury and the Midland Bank seem to take a very different viewpoint on this matter?
§ Sir J. SimonI think inflation and deflation are very difficult words, but I believe the policy we are pursuing to be right.
§ Mr. Craven-EllisIs the right hon. Gentleman satisfied that the deflationary policy of the Bank of England is likely to help him in his declared intention of maintaining cheap money rates?
§ Sir J. SimonI agree with the hon. Member that a policy of cheap money rates has, upon the whole, great advantages.