§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer what assessment he has made of the reasons why the nominal exchange rate against the ecu in January was only 2 per cent. less than in December 1989; what was the corresponding reduction/increase in the real exchange rate against the ecu based on(a) relative producer prices, (b) relative export unit values and (c) the terms of trade for manufacturers: and what has been the effect on output and employment in manufacturing industry.
§ Mr. NelsonMovements in the nominal exchange rate between currencies reflect many factors in the countries concerned, including relative growth rates, cyclical positions and inflation prospects. I refer the hon. Member to the answer I gave him on 21 March 1994,Official Report, column 15, which provides references to data which can be used to calculate the information requested. In the same answer I made a statement about the effect of the real exchange rate on output and employment in manufacturing industry, to which I also refer him.