§ Mr. Gouldasked the Chancellor of the Exchequer whether he will publish in the Official Report a table showing for each year since 1978 the increase in sterling M3 and the increase in prices; and what is his current estimate of the time lag between an increase in the money supply and an increase in prices.
§ Mr. Ian StewartSterling M3 is published in table 11.1 of "Financial Statistics" and price indices on page 42 ofEconomic Trends. Over the medium to long term there is a relatively stable relationship between the growth of the principal monetary aggregates and the rate of inflation, but at any time the precise relationship will depend on the circumstances prevailing.