§ 22. Mr. Biffenasked the Chancellor of the Exchequer whether, in the light of recent speculation in international currencies, he will now commission a study to determine the advantage of a more flexible exchange rate for sterling.
§ Mr. Roy JenkinsNo, Sir.
§ Mr. BiffenWhy is the right hon. Gentleman so obstinate in his refusal to consider the possible advantages of a more flexible exchange rate? Has attention been drawn to the fact that two of the leading protagonists of the money supply school to which he has now been converted, Dr. Milton Freedman and Dr. Harry Johnston, also are advocates of more flexible exchange rates?
§ Mr. JenkinsThe hon. Gentleman should not assume that I have been converted 224 to the money supply school, which is rather different from the views I have expressed. Nor should he assume that an inquiry or commission to study the advantages would be the most sensible approach, even assuming that I thought there were advantages to be gained. I do not think that such a movement as the hon. Member suggests would solve the present world monetary difficulties. But even if I thought it would, I am extremely doubtful whether a commission would be the right approach.