§ Mr. Austin Mitchellasked the Chancellor of the Exchequer (1) whether the assessment given in the reply of 18 January 1980, Official Report, c. 893–95 concerning the relationship between the money supply and prices remains his view; what is the direction of casualty between money incomes and changes in money supply; whether the velocity is now higher or lower than the equilibrium rate; and if he will now include in the table figures for the period since mid-1979;
(2) if he will bring up to date the sequence of figures for money supply, volocity of circulation, prices and output given in the answer of 18 January 1980, Official Report, c. 893–94, to the hon. Member for Grimsby;
(3) further to his reply dated 10 May 1982 to a written question from the hon. Member for Grimsby concerning the velocity of monetary circulation, whether he will publish in the Official Report the percentage reduction 534W since the first quarter of 1980, the reasons for the reduction, and what further reduction could be made without prejudice to the monetary targets;
(4) whether he will bring up to date the information provided in his reply of 21 April 1982, Official Report, c. 91–92, concerning increases in the velocity of monetary circulation together with his estimate of the effect which the changes have had on the level of interest rates and on the level of the exchange rate since May 1979;
(5) what is his assessment as to whether there is any link between the fall in interest rates and the reduction in the velocity of monetary circulation over the past two years.
§ Mr. Bruce-GardyneI regret that in the time available it has not been possible to provide the information requested. I shall write to the hon. Member and place a copy of my letter in the Library of the House.