§ 28. Mr. Bruce-Gardyneasked the Chancellor of the Exchequer what was the increase in the money supply, in the latest period of three months for which figures are available, expressed at an annual rate and measured by the M3 and Ml definitions and by reference to the increase in notes in circulation with the public, respectively; and whether this was in accord with the Government's monetary policy.
§ Mr. NottIn the three months to mid-February Ml increased at an annual rate of about 11 per cent. I do not consider that the recent three months' figures for 197W notes and coins in circulation with the public and for M3, expressed at an annual rate, are a reliable indicator of the direction of monetary policy though, for what they are worth, they are 18 per cent. and 40 per cent. respectively. Clearly were these figures meaningful they would not be in accord with the Government's monetary policy.