§ Dr. Reginald Bennettasked the Chancellor of the Exchequer whether he attaches greater weight to the figures given for money supply growth under the M1 and M3 definitions than to the figures given in "Financial Statistics" published by the Central Statistical Office for "Domestic Credit Expansion"; and what is the highest figure for "Domestic Credit Expansion" in the current financial year considered to be compatible with a deflationary monetary policy.
§ Mr. DellA proper assessment of monetary conditions has to take account of a range of indicators for different aspects of the monetary system including not only the aggregates M1, M3 and domestic credit expansion but also their components and other indicators such as interest rates and credit extended by institutions other than banks. Given this it is not possible to say, in general, that one indicator is more important than another: the relative significance will depend both on the issue which is being considered and on circumstances at the particular time. Nor is it possible to say in isolation from other developments in the economy, what maximum value for one indicator, such as domestic credit expansion, would be consistent with the Government's overall economic policy.