HC Deb 29 July 1988 vol 138 cc736-8W
Mr. Austin Mitchell

To ask the Chancellor of the Exchequer whether he will publish in theOfficial Report a table showing for each year since 1958 the estimated velocity of monetary circulation in terms of sterling MO and sterling M3.

Mr. Lilley

The available figures are as follows:

Velocity of circulation
Ratio of money stock to Gross Domestic Product (Average) at current market price. Annual averages
M0 M3
1963 2.94
1964 3.01
1965 3.04
1966 3.06
1967 3.02
1968 3.00
1969 3.13
1970 13.11 3.23
1971 13.50 3.21
1972 14.24 2.89
1973 14.43 2.64
1974 14.55 2.55
1975 16.02 2.97
1976 17.09 3.30
1977 18.02 3.57
1978 18.07 3.56
1979 18.78 3.71
1980 20.21 3.75
1981 21.31 3.48
1982 23.08 3.20
1983 23.73 3.15
1984 24.04 3.08
1985 25.19 3.02
1986 25.92 2.74
1987 27.05 2.47

The velocity of circulation is compiled on a quarterly basis. It is based on average end quarter estimates of M3 before June 1982, and on monthly M3 data thereafter. MO is a monthly series throughout. M3 is not available before 1963 and MO not available before 1970.

Mr. Austin Mitchell

To ask the Chancellor of the Exchequer whether he will publish in theOfficial Report a table showing (i) the increase in cash terms in sterling MO and sterling M3 (a) from May 1979 to the latest available date and (b) between January 1974 and May 1979, (ii) the annual rate of inflation on these three dates, (iii) the increase in the amount lent by the banks to, respectively, the public sector and the private sector, (iv) the increase in outstanding mortgages on residential property, (v) the increase in producer and retail prices and (vi) the average annual rate of increase in each of the foregoing cases.

Mr. Lilley

The hon. Member refers in his question to sterling MO. That as such has never existed. I assume he means MO. Sterling M3 is now called M3.

Some of the data requested are not available monthly. In these cases, sources of calendar quarterly data are given.

Recent figures for MO are available in Financial Statistics table 11.4; earlier figures are available on the Central Statistical Office public database or from the Bank of England on request. M3 figures are available in Financial Statistics table 11.2 and 11.3 from June 1982; quarterly figures are available for earlier periods in the annual supplement of Economic Trends 1988, page 151. Figures for the general index of retail prices and index numbers of producer prices are available in the Monthly Digest of Statistics tables 18.1 and 18.6. Figures for bank lending to the public sector and private sector are available in Financial Statistics table 6.1 for recent monthly periods and quarterly for earlier periods. Recent quarterly figures for loans to the personal sector for house purchase are available in Financial Statistics tables 9.2 and 14.4; earlier figures are available on the Central Statistical Office public database, or on request from the Bank of England.

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