HC Deb 20 January 1976 vol 903 cc439-40W
Dr. Reginald Bennett

asked the Chancellor of the Exchequer whether, in view of the exclusion of public sector deposits with United Kingdom banks from the money supply figures as defined, the Government intend to adjust their targets for money supply growth downwards to take account of the relative contraction of private sector transactions as a proportion of total transactions in the domestic economy likely to result from the Government's nationalisation policies.

Mr. Dell

Public sector deposits with United Kingdom banks, though not included in the M1 definition, are included in the wider M3 definition of the money supply. As I told the hon. Member on 30th October—[Vol. 895, c.590.]—a proper assessment of overall monetary conditions has to take account of a range of indicators including Ml and M3 and various measures of liquidity.