Archive (Walters MSS)

Economy: Alan Walters diary (inflation) [lunch with Freidman; memo to PM on US inflation rate][released 2012]

Document type: Declassified documents
Source: Walters MSS (Churchill Archives Centre): WTRS 3/1/2
Editorial comments:

Read other entries from this diary. View all Walters documents. The original diary can be studied here

Importance ranking: Major
Word count: 278
Themes: Monetary policy

Monday 20th September 1982

Sent Peter Middleton a note from John Vereker on need for 3% norm rather than 4% wanted by Leon Brittan

Spoke to Peter Middleton about need to help wages “norm” at 3 not 4% in view of inflation rapidly coming down.

Lunch Milton Friedman - he argued US inflation will stay at 8% and interest rates will not fall - usual criticisms of yo-yo effect of M in UK as in USA

Memo to PM for tomorrow’s box on US inflation rate - told her that it is basically on course for 3-5% inflation in 1984. One problem with velocity which in winter of 1982/2 declined 3 % instead of growing 3% (Used Herb Stein’s statistics [Sic]