§ Mr. Skinnerasked the Chancellor of the Exchequer what is the real value of the pound sterling compared with its value in May 1979.
§ Mr. Peter ReesThere is no unique measure of real exchange rates. The one used in the following table is calculated from the sterling exchange rate index and GDP deflators in domestic and competitors' economies, which have a relatively broad coverage of price movements.
£ real exchange rate* (1980 = 100) 1979 Second Quarter 82 1984 Second Quarter (latest) 84 Percentage change +2.4 * Competitors' price movements are a weighted average of prices in other major OECD countries; the weights are as in the IMF's multilateral exchange rate model.