Written question asked by Peter Bottomley (Conservative), in the House of Commons. It was due for an answer on Wednesday, 19 February 1997. It was answered by Angela Knight (Conservative) on Wednesday, 19 February 1997 on behalf of the Treasury.

Treasury

Question: If the Treasury model of the economy allows simulated falls in both unemployment and inflation. - Inc fact that copy of the model is in the Library.

Answer: Mr. Peter Bottomley: To ask the Chancellor of the Exchequer if the Treasury model of the economy allows simulated falls in both unemployment and inflation. [15843] Mrs. Angela Knight: The Treasury model could predict a positive relationship between inflation and unemployment in some circumstances. For example, a cut in indirect taxes or imported raw material prices would tend temporarily to reduce inflation and unemployment. The model is available to the public and a copy is held in the House of Commons Library.

Secondary information