asked the Chancellor of the Exchequer what is the relationship between movements in the public sector borrowing requirement and money supply growth on an annual basis between 1972 and 1979; and if he will make a statement.

Movements in the PSBR and £M3 between 1972 and 1979 are shown in the following table:

£ millions
	PSBR	Increase in £M3
1972	2050	4927
1973	4191	6702
1974	6437	3255
1975	10480	2331
1976	9128	3565
1977	5995	4130
1978	8331	6772
1979	12569	6615

The relationship between fiscal policy and £M3 is discussed in a Treasury paper, entitled "Background to the Government's Economic Policy", submitted recently to the Treasury and Civil Service Select Committee. A copy has been placed in the House of Commons Library.