HC Deb 11 May 1982 vol 23 cc211-2W
Mr. Austin Mitchell

asked the Chancellor of the Exchequer what was the percentage increase in the velocity of circulation of money in the decades ended in 1963, 1973 and 1980 and in the period 1973 to 1980; how these figures compare with the increase in manufacturing output; and what information he has as to the comparable figures for the Federal Republic of Germany.

Mr. Bruce-Gardyne

Percentage increases in the velocity of circulation of sterling M3 in the decades ending in 1963, 1973 and 1980, and in the period 1973 to 1980, may be derived from the table given in my reply of 21 April,Official Report, c. 91–92. Figures of velocity for the Federal Republic of Germany may be derived from the IMF publication, International Financial Statistics.

To compare the increases in United Kingdom velocity with increases in manufacturing output, I refer the hon. Member to the manufacturing industry component of the index of production, published in the Economic Trends annual supplement. Comparable figures for the Federal Republic of Germany are given in the OECD publications, Main Economic Indicators and Industrial Production.

Mr. Austin Mitchell

asked the Chancellor of the Exchequer, further to his reply of 21 April, Official Report, c. 91–2, concerning the velocity of circulation of money, what was the percentage increase in velocity between 1974 and 1980; what was the reason for the increase; and what information he has as to how the figures compare with those of other industrial countries over this period.

Mr. Bruce-Gardyne

The percentage increase in velocity of circulation of sterling M3 between 1974 and 1980 may be derived from the table given in my reply of 21 April,Official Report, c. 91–2. The reasons for the increase were given in my reply of 10 May, Official Report, c. 186–7. Figures for the velocity of circulation of money in other industrial countries may be derived by taking the ratio of the figures for gross national product to those for money, seasonally adjusted, given in the country tables of the monthly IMF publication, "International Financial Statistics."