§ Mr. Knoxasked the Chancellor of the Exchequer by what percentage the velocity of circulation of money has fallen; by what percentage the money supply (M3) has increased; and by what percentage the value of money has declined in each quarter since October 1971.
§ Mr. NottFollowing is the information:
Fall in velocity of circulation Increase in M3† Fall in purchasing power of pound Per cent. Per cent. Per cent. 1971— 4th quarter 1.8 5.3 1.3 1972— 1st quarter 5.4 4.5 1.5 2nd quarter 1.1* 7.5 1.8 3rd quarter 5.2 4.2 1.6 4th quarter 0.9 7.4 2.4 1973— 1st quarter n.a. 5.2 1.7 * Estimate. † Seasonally adjusted. n.a. = not available. Sources: Economic Trends and Bank of England Quarterly Bulletin.
The changes in velocity and in the purchasing power of the pound are based on quarterly averages; increases in M3 are between end-quarters.