HC Deb 19 November 1981 vol 13 c189W
34. Mr. Richard Wainwright

asked the Chancellor of the Exchequer if he will ascertain whether financial targets expressed in terms of money gross domestic product would be more widely understood in the country than money supply targets.

Mr. Ridley

Money gross domestic product would be difficult to use as an operational target, but it helps to explain the implications of the Government's anti-inflation strategy. For example, the need to restrain the total flow of money spending in the economy highlights the way that moderate pay settlements can improve the prospects for the output and, hence, jobs.