§ Mr. Arthur Lewisasked the Chancellor of the Exchequer what estimate he made of the effect on the cost of living of his decision to float the £ sterling.
§ Mr. NottThe precise effect on the cost of living will depend mainly on movements in the parity over the coming period. The main factor affecting the rate of price increase will continue to be the size of wage settlements.
§ Mr. Arthur Lewisasked the Chancellor of the Exchequer what estimate he made of the effect on the internal purchasing value of the £ sterling of instituting a floating rate of exchange.
§ Mr. NottThe effect of floating on the internal purchasing power of the £ is not expected to be large. Its precise effect will depend on a number of factors, in particular movements in the parity over the coming period.
§ Mr. Arthur Lewisasked the Chancellor of the Exchequer what estimate he made 434W of the effect on the growth rate of the economy of floating the exchange rate of the £ sterling.
§ Mr. NottThe indications are that the economy is growing in line with the Budget forecast of a 5 per cent. growth rate over the 18 months to the first half of next year. It is not anticipated that the floating of the £ will affect this forecast