§ Mr. Austin Mitchellasked the Chancellor of the Exchequer whether his Department 422W expects the effect of exchange rate changes to be delayed as long as indicated in Treasury working paper No. 2; what modifications, if any, he would make to the findings in the light of experience in the past two years; and when he expects the full effect of the rise in the exchange rate in the past 12 months to be reflected in the balance of trade and in employment in manufacturing.
§ Mr. LawsonThe relationships that make up the Treasury model are the subject of continuous research. Some of the equations underlying Treasury working paper No. 2 have been replaced by more recently estimated relationships. The latest published versions are contained in the macroeconomic model technical manual (HM Treasury, October 1979), particularly sections 5, 6, 8, 15 and 17. The hon. Member may wish, however, to pursue his inquiry via access to the Treasury's economic model through the Library of the House.