§ 27. Mr. Gouldasked the Chancellor of the Exchequer how far control of the money supply is an element in pursuing his policy of maintaining the current parity for the £ sterling.
§ Mr. HealeyThe Government's policy is to work for continued stability in sterling's effective exchange rate as part of the fight against inflation. Our determination to control the growth in the monetary aggregates makes an important contribution to the success of this policy, But I do not rely on any simple mechanical relationship between the exchange rate and the money supply. I recognise that 599W a wide range of other factors can and do bear on the strength of sterling.