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Retail Prices

Volume 982: debated on Wednesday 2 April 1980

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asked the Chancellor of the Exchequer whether his Department has done any simulations since 3 May 1979 on the Treasury macroeconomic model to forecast the effect of any movement in the exchange rate or change in the value of the green pound; and, if so, whether he will publish in the Official Report information showing what effect the movement or change had on the level of prices after one year, two years and five years, respectively.

For the effects of a green pound devaluation on retail prices, the rough rule of thumb given in my right hon. Friend's reply to the hon. Member's question of 11 February—[Vol. 978, c. 504–5]—remains broadly correct. It is not customary to provide details of computer simulations performed in the Treasury as part of the process of forming policy advice for Ministers.