§ Mr. Norman Atkinsonasked the Chancellor of the Exchequer what effect he estimates a 5 per cent. plus or minus variation in the dollar-sterling exchange rate would have on the British retail price index.
§ Mr. HealeyThe effect of a change in the dollar-sterling exchange rate on the retail price index will depend on a number of factors including the extent to which other exchange rates are affected; the repercussions that there may be elsewhere in the economy—for example, on the level of earnings, profit margins or the level of activity; and any actions the Government may take in consequence. These effects can only be quantified by simulating the change on a macro-economic model.