Economy: Alan Walters diary [Salomon “hysterical about CPS meeting”; Drummond says Walters has effect on policy][released 2012]

Wednesday 3rd February 1982

Walter Salomon - hysterical about CPS meeting but v. complimentary about me - talked to PM and found that she had the “highest opinion” of me.

M1 mtg + Peter M [Peter Middleton] &#43 Treasury - large forecasts explained - but environment has changed and we need to live with something lower - silly to associate a reduction in inflation (and interest) with exploding M1.

PM’s and my argument is ok though - 7-11% and declining + lots of words.

Peter Kenyon (Reuters) - a very sensible and nice press man (in lobby) + Liz Drummond

- said that I had an effect on policy, more than I thought I would - good relationship with PM - say what we think.

Ivan Fallon (Telegraph) - gave him a little boost.

He recalled my correct forecasting of the path of the value of sterling when we met in early 1981 with Jock B.G [Jock Bruce-Gardyne]

Note on Chairman for Rail Enquiry - Goldstein & Foster.

Louise’s Birthday dinner with M. & Gill, Kate etc.