§ 3. Mr. Knoxasked the Secretary of State for Trade and Industry how many individuals and how many organisations have made representations to him in favour of fixed exchange rates in the past year.
§ The Minister for Information Technology (Mr. Kenneth Baker)I have not received any representations seeking a return to fixed exchange rates.
§ Mr. KnoxDoes my right hon. Friend agree that the British economy worked much better when we had fixed exchange rates? What steps are the Government taking to bring about greater stability in international exchange rates, and, as a step towards that, when do they intend to join the exchange rate mechanism of the EMS?
§ Mr. BakerI do not think that I would subscribe to my hon. Friend's view that the British economy would necessarily work better with fixed exchange rates. I remember a time when there were such rates, and there were a series of lurches of policy to maintain a level which became very unreasonable. The problem about maintaining a fixed exchange rate is rather like rolling a stone up a hill. It can be done. It requires great effort and determination, but at any time it can slip out of control and crush those who are trying to push it uphill.