§ Mr. Gouldasked the Chancellor of the Exchequer what is his estimate of the change in cash balances required in each of the years from 1979 to 1983 and the current year to date to accommodate changes that have taken place in the rate of inflation.
§ Mr. Ian StewartThe data on cash holdings by the public and in banks' tills are provided in table 6.4 of "Financial Statistics". Data on MO, which comprises cash held by the public and in banks' tills and banks' operational balances at the Bank of England, are provided on a monthly average basis in a Bank of England press release of 13 March 1984.
The determinants of the demand for cash and MO are examined in a recent Government economic service working paper No. 66.