Economy: Alan Walters diary (budget) [PM desires 2 dollar exchange rate. Memo to PM to look at M1][released 2012]

Document type:	Declassified documents
Source:	Walters MSS (Churchill Archives Centre): WTRS3/1/1
Editorial comments:	Read other entries from this diary. View all Walters documents. The original diary can be studied here
Importance ranking:	Major
Word count:	122
Themes:	Monetary policy, Public spending & borrowing

Monday 30th November 1981

CPRS Rickard about reducing benefits by 10% = 150,000 off register.

- pushing them up to 250,000 - 500,000 so that its consistent with Minford s figure.

DW [David Wolfson] worried about PM s response to interest rate questions (said she wanted £ at 2.00, and too much borrowing etc.). M3 is the excuse of B/E [Bank of England] - frightened of PM s wrath when M3 appears.

[New York Times (Rattner) interview - young brash man] [Steve Rattner]

Memo to PM - should NOT target £M3 but look at M1, M0 etc.

instead agree with Peter M [Peter Middleton] that interest rates should be allowed to fall today.

Dinner with Christopher Bailey (Bristol Channel Ship Repairs) and JH [John Hoskyns]