§ Mr. Deakinsasked the Chancellor of the Exchequer what correlation exists between the rate of increase of the money supply (M3) and the rate of inflation.
§ Mr. NottThere is no simple direct relationship between money supply and inflation. Although there is a fairly close correlation, over long periods, between changes in M3 and changes in national income, the relationship does not tell us, of course, whether a rise in money supply is occasioned by changes in money incomes orvice versa.