§ Mr. Austin Mitchellasked the Chancellor of the Exchequer what has been the velocity of circulation of money as measured by the ratio between national income and money supply quarter by quarter from 1971 to the present.
§ Mr. LawsonThe information is as follows:
velocity of circulation* M1 £M3 1971 1 5.597 3.062 2 5.700 3.111 3 5.856 3.198 4 5.796 3.151 1972 1 5.563 2.997 2 5.476 2.892 3 5.444 2.788 4 5.564 2.783 1973 1 5.860 2.823 2 5.673 2.677 3 5.773 2.603 4 5.925 2.499 1974 1 5.859 2.366 2 6.293 2.498 3 6.574 2.644 4 6.398 2.628 Ml £M3 1975 1 6.453 2.707 2 6.733 2.883 3 6.596 2.930 4 6.593 3.031 1976 1 6.642 3.128 2 6.660 3.161 3 6.729 3.196 4 6.849 3.247 1977 1 6.797 3.250 2 6.871 3.342 3 6.902 3.450 4 6.612 3.417 1978 1 6.442 3.355 2 6.496 3.351 3 6.539 3.388 4 6.341 3.338 Source: "Financial Statistics," table 7.1 *Ratio of GNP at current prices seasonally adjusted expressed at an annual rate to the central quarterly average of money stock seasonally adjusted.