§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer if he will make a statement on his assessment of the relationship between the money supply and the future rate of inflation. [17647]
§ Mrs. Angela KnightThe Government consider all the relevant information when assessing the prospects for inflation up to two years ahead. The growth of the money supply is just one of the many indicators examined when making this assessment. The relationship between money growth and inflation has varied considerably in the past, for instance when financial markets were liberalised in the 1980s.