HC Deb 25 January 1980 vol 977 c410W
Mr. Austin Mitchell

asked the Chancellor of the Exchequer whether he considers the present level of unemployment to be equal to the natural or minimum sustainable rate; and, if not, what rate of unemployment he has adopted as the target rate for regulating the money supply.

Mr. Lawson

Estimates of a natural or minimum sustainable rate of unemployment are extremely uncertain. The money supply is not regulated according to any target rate of unemployment, but it is true that within a given money supply target unrealistic wage settlements will tend to cause unemployment to rise.