§ Mr. Austin Mitchellasked the Chancellor of the Exchequer (1) if he will circulate a table in the Official Report showing the increase in domestic credit expansion in the principal trading countries each year since 1967 in cash terms and as a percentage of their monetary stock as defined by them;
(2) if he will publish in the Official Report a table showing for the United Kingdom, the United States of America and Germany the percentage increase each quarter on the previous years, from 630W 1971 onwards, of (a) the money supply as denned by cash and current and time deposits and (b) domestic credit expansion, as a percentage of M3 or its nearest equivalent.
§ Mr. LawsonThe best readily available data as a basis for international comparisons of monetary aggregates are those given in the IMF publicationsInternational Financial Statistics— monthly, latest edition December 1979— and International Financial Statistics Yearbook—annual, latest edition 1979. For most countries, including the United Kingdom, the United States of America, and Germany, these publications give data for domestic credit—line 32 in each country's table—money—line 34—and quasi-money—line 35—the Yearbook giving annual data back to 1967 or earlier and successive issues of the monthly publication giving quarterly data back to 1971 or earlier.
These data are compiled according to IMF definitions and include adjustments to improve their comparability. The data for the United Kingdom differ from those compiled according to United Kingdom definitions. "Money"—line 34—plus quasi-money—line 35—approximates to M3 on the United Kingdom definition.
The IMF data for domestic credit are compiled in terms of a stock, while in the United Kingdom only the flow, domestic credit expansion, is compiled, and on a somewhat different basis.
§ Mr. Austin Mitchellasked the Chancellor of the Exchequer if he will publish a table in the Official Report showing domestic credit expansion as a percentage of M3 in each 3'ear since 1952 and in 1980 to date.
§ Mr. LawsonStatistics of M3 have been officially compiled only from 1963. Figures for the amounts outstanding at end-of-quarter from the first quarter of 1963 to the first quarter of 1975 are given inBank of England Statistical Absract Number 2 1975 table 12/1. Figures for later quarters are given in Financial Statistics table 7.1, the latest issue of which is for January 1980.
Figures on a more approximate basis for M3 outstanding at end-of-year from 1951 to 1962, compiled from less comprehensive information from banks than is available for 1963 onwards, are given 631W in Bank of England Statistical Abstract Number 1 1970, page 81.
Figures for domestic credit expansion have been compiled on current definitions only from the second quarter of 1963. The figures for the earlier years since then are:
Domestic credit expansion (£ million) 1964 1508 1965 1114 1966 711 1967 1734 1968 1969 1969 —243 1970 735 1971 1190 Figures from 1972 are given in Economic Trends Annual Supplement 1980 Edition—page 140—with the most recent figures in Financial Statistics table 7.3, the latest edition of which is for January 1980.
§ Mr. Austin Mitchellasked the Chancellor of the Exchequer whether he will publish in the Official Report figures showing for each quarter from 1 January 1967 the percentage change in the real money supply each quarter over the four preceding quarters.
§ Mr. LawsonInterpreting "real money supply" as sterling M3 deflated by the implied deflator for total domestic expenditure, the information is as shown below:
632W
PERCENTAGE INCREASE IN REAL MONKY SUPPLY:* LEVEL AT END OF QUARTER COMPARED WITH TWELVE MONTHS EARLIER (NOT SEASONALLY ADJUSTED) 1967— First quarter —0.1 Second quarter 2.2 Third quarter 4.6 Fourth quarter 7.1 1968— First quarter 5.7 Second quarter 4.5 Third quarter 1.5 Fourth quarter 0.2 1969— First quarter 0.3 Second quarter —2.9 Third quarter —2.9 Fourth quarter —2.5 1970— First quarter —3.6 Second quarter 0.1 Third quarter 0.6 Fourth quarter 0.3 1971— First Quarter 2.9 Second quarter 1.8 Third quarter 20 Fourth quarter 5.7
1972— First quarter 8.0 Second quarter 15.2 Third quarter 16.6 Fourth quarter 17.1 1973— First quarter 16.3 Second quarter 13.7 Third quarter 14.8 Fourth quarter 11.1 1974— First quarter 5.1 Second quarter —2.1 Third quarter —8.0 Fourth quarter —11.2 1975— First quarter — 13.8 Second quarter —12.6 Third quarter —10.8 Fourth quarter — 11.8 1976— First quarter — 8.6 Second quarter —5.6 Third quarter —3.6 Fourth quarter —3.8 1977— First quarter — 5.9 Second quarter —5.4 Third quarter —5.4 Fourth quarter —0.7 1978— First quarter 5.4 Second quarter 5.9 Third quarter 5.7 Fourth quarter 5.3 1979— First quarter 1.2 Second quarter Nil Third quarter Nil * Sterling M3 deflated by the implied deflator for total domestic expenditure