HC Deb 27 October 1983 vol 47 c179W
19. Mr. Meacher

asked the Chancellor of the Exchequer if he will make a statement on the effects of the abolition of exchange controls upon the current levels of domestic borrowing and interest rates.

Mr. Moore

These effects are difficult to quantify but are likely to have been small.

27. Mr. Dobson

asked the Chancellor of the Exchequer what effect the abolition of exchange controls and the increase in overseas capital flows has had upon the level of domestic interest rates.

28. Mr. Haynes

asked the Chancellor of the Exchequer what effect the abolition of exchange controls has had upon the British economy.

Mr. Moore

The abolition of exchange controls has kept the exchange rate lower than it would otherwise have been. The effects on interest rates are complex and difficult to quantify but are likely to have been small. As a net result, ouput, investment and employment are probably higher than they would otherwise have been.