HC Deb 19 February 1997 vol 290 cc576-7W
Mr. Peter Bottomley

To ask the Chancellor of the Exchequer if the Treasury model of the economy allows simulated falls in both unemployment and inflation. [15843]

Mrs. Angela Knight

The Treasury model could predict a positive relationship between inflation and unemployment in some circumstances. For example, a cut in indirect taxes or imported raw material prices would tend temporarily to reduce inflation and unemployment. The model is available to the public and a copy is held in the House of Commons Library.