§ Mr. Austin Mitchellasked the Chancellor of the Exchequer to what extent the general level of productivity in internationally traded goods and service reflects differences in wage levels in terms of a common currency.
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§ Mr. Bruce-GardyneThere is no satisfactory explanation of differences between productivity levels in the United Kingdom or other developed economies or in changes over time in the growth of trend productivity. Taken over a number of years there will be an association between international differences in productivity and wage levels expressed in a common currency. This relationship can, however, vary over time and it is not clear how far relative wages effect relative productivity or vice versa.