Written question asked by Austin Mitchell (Labour), in the House of Commons. It was due for an answer on Wednesday, 26 February 1997. It was answered by Angela Knight (Conservative) on Wednesday, 26 February 1997 on behalf of the Treasury.

Treasury

Question: If he will comment on his assessment of the relationship between the money supply and the future rate of inflation.

Answer: Mr. Austin Mitchell: To 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 Knight: The 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.

Secondary information