§ Mr. Bruce-Gardyneasked the Chancellor of the Exchequer what was the increase in the money supply, according to the Ml and M3 definitions, respectively, in the latest period of three months for which the information is available, measured at an annual rate; which of these two definitions is currently preferred by Her Majesty's Government; and whether this increase conformed to the monetary policy of Her Majesty's Government.
§ Mr. NottIn the three months to mid-May, Ml grew at an annual rate of 19 per cent. and M3 at an annual rate of 12 per cent. It is necessary to look at both measures of money supply rather than one alone, and indeed at the whole range of monetary indicators. Both Ml and M3 have fluctuated widely in recent months; nevertheless, after making allowance for these short-term fluctuations my right hon. Friend is at present broadly satisfied with the development of the monetary aggregates.