§ Mr. Austin Mitchellasked the Chancellor of the Exchequer whether he will publish in the Official Report a table showing the velocity of circulation of money each year since 1951, as defined from time to time.
§ Mr. WakehamThe attached table shows the velocity of circulation of money in the years 1952 to 1980, calculated as the ratio of gross national product—expenditure-based—at market prices, to the average stock of sterling M3 outstanding. For the years 1963 to 1980, the latter is an average of the stock outstanding at the end of the five appropriate calendar quarters. For the years 1951 to 1962 estimates of the stock of M3 only, and only at end-year are available. The figures given for 1952 to 1962 are calculated using an average of the stocks outstanding at the beginning and end of the year, estimated on the crude assumption that the rate of growth of sterling M3 was the same as that of M3. It is, therefore, not possible to give a figure for 1951. The figures for the earlier period should be regarded as considerably less accurate than those for the later years. A GNP figure for 1981 is not yet available, as a consequence of last year's Civil Service dispute. Quarterly series of velocity are published in Financial Statistics, table 7.1.
92W
Year Velocity 1952 1.90 1953 1.98
Year Velocity 1954 2.02 1955 2.16 1956 2.37 1957 2.46 1958 2.50 1959 2.51 1960 2.55 1961 2.67 1962 2.73 1963 2.80 1964 2.85 1965 2.88 1966 2.90 1967 2.91 1968 2.89 1969 2.97 1970 3.09 1971 3.11 1972 2.86 1973 2.65 1974 2.56 1975 2.94 1976 3.24 1977 3.42 1978 3.44 1979 3.55 1980 3.56