§ Mr. AllenTo ask the Chancellor of the Exchequer (1) what is his estimate of the long-term and short-term capital account of the balance of payments deficit;
(2) if he will include in the balance of payments figure either monthly or quarterly the long-term capital account deficit;
(3) if he will make available to hon. Members figures on the long and short-term capital account deficit when they are available to the Treasury; and if he will make a statement.
§ Mr. Norman LamontThe available information on the main categories of financial transaction in the capital account of the balance of payments are published regularly each quarter by the Central Statistical Office in the balance of payments press notice and inEconomic Trends; both publications are available in the Library. It is not particularly meaningful to distinguish between long-term and short-term capital flows.
§ Mr. AllenTo ask the Chancellor of the Exchequer what assessment he has made of the relative impact on exchange rates and the balance of payments of(a) capital flows and (b) trade flows; and if he will make a statement.
§ Mr. Norman LamontIn the absence of measurement error, capital flows and flows on the current account necessarily sum to zero. The effects, if any, of such flows on the exchange rate will depend on present and expected future policies.