§ Mr. Brothertonasked the Chancellor of the Exchequer what steps he proposes to take to reduce the target of the growth of M3 to figures more consistent with exchange rate stability in relation to other EEC member currencies.
§ Mr. Joel Barnett:The Government have made it clear that, as part of their policies for fighting inflation, they will work for a continuation of the exchange rate stability which sterling has enjoyed for nearly two years. The Government's target for the growth of sterling M.3 is fully consistent with this objective. Indeed, the rate of growth of sterling M.3 during the last six months has been lower than that of comparable aggregates in other major countries.