§ Mr. Austin Mitchell
asked the Chancellor of the Exchequer by what percentage import prices by manufacturers would be expected to rise after one, three 460W and six months following a 10 per cent. devaluation; and what are the corresponding estimates for exports of manufacturers.
§ Mr. Bruce-Gardyne
In practice the overall response and timing of import and export price changes to a devaluation will depend on a number of factors, including, for example, the pressure of demand in domestic and overseas markets and companies' holdings of stocks. The elasticities used in the Treasury model are published in Her Majesty's Treasury macroeconomic model equation and variable listing, December 1980, which is available in the House of Commons Library.