HC Deb 10 January 1977 vol 923 cc414-5W
Mr. Gould

asked the Chancellor of the Exchequer whether he is satisfied that export-led growth will be achieved in 1977, if the exchange rate is allowed to appreciate as forecast by the National Institute for Economic and Social Research in spite of the United Kingdom's continuing higher rate of inflation.

Mr. Denzil Davies

For a given rate of domestic inflation an appreciation of the exchange rate in 1977 would reduce the price competitiveness of United Kingdom exports. There is, however, a long lag between changes in competitiveness and export volumes, so that exports in 1977 will reflect levels of competitiveness during the previous few years. Moreover the current competitive position is extremely favourable.