§ 58. Mr. Bruce-Gardyneasked the Chancellor of the Exchequer what was the percentage increase in the money supply, according to M3 and M5 definitions, respectively, expressed at an annual rate, in the latest period of three months for which figures are available; and if he will now revert to the practice of publishing targets for the percentage growth of the money supply to the end of the current financial year.
§ Mr. NottIn the three months to mid-October, M3 increased at an annual rate of about 18 per cent. The so-called M5 is only one of several possible wider 73W definitions, and monthly figures for its components are not available on a common basis. It has never been the practice to publish targets for money supply and I do not think it would be desirable to do so now.
§ Mr. Deakinsasked the Chancellor of the Exchequer what are the principal factors taken into account by the Government in regulating the money supply, M3.
§ Mr. NottAs my right hon. Friend explained in his Budget Speech, monetary policy is used as an integral part of the general management of demand. The appropriate growth of the money supply therefore depends on our objectives for growth, employment and prices.