§ Mr. Woofasked the Chancellor of the Exchequer what are the principal factors taken into account by the Government in regulating the money supply, M3.
§ Mr. Denzil DaviesThe prime aim of the Government's monetary policy is to maintain control over the monetary aggregates in such a way as to support the Government's counter-inflation and industrial expansion policies In coming to decisions affecting monetary policy, the Government pay regard to a wide range of economic and financial factors, in particular the prospects for inflation and future trends in real activity. The details of the Government's monetary objectives remain as set out in the Letter of Intent to the IMF last year.