§ Mr. Foulkesasked the Chancellor of the Exchequer what is his latest estimate of the effects on United Kingdom employment, balance of payments, inflation and the public sector borrowing requirement of (a) a 1 per cent. reflation of national income in the United Kingdom alone and (b) a 1 per cent. joint reflation by all Governments in western Europe.
§ Mr. Peter ReesThe economic effects of reflation will depend on the nature of that reflation. Estimates could be made using macroeconomic models, but these would be highly uncertain and subject to large margins of error.
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Married couple + 2 children percentage changes x average earnings ¾ 1 2 5 Increase in taxation in year to: 1980–81 +4.2 +4.4 +6.9 +6.9 1981–82 +6.3 +5.2 +7.9 +4.8 1982–83 +0.5 +0.7 +0.9 -0.6 1983–84* +0.3 +0.8 -0.4 -0.6 * Estimated.