HC Deb 04 March 1980 vol 980 cc148-9W
Mr. Austin Mitchell

asked the Chancellor of the Exchequer whether the Government's monetary and exchange rate policy assumes that the velocity of circulation of money is not independent of the rate of interest.

Mr. Lawson

The Government take full account of changes in the velocity of circulation and their relationship with changes in interest rates in setting their monetary targets and in deciding how they should be met.

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