Given at the Lord Mayor's dinner to the bankers and merchants of the City of London on 16 October 1980.
This evening, My Lord Mayor, is by tradition an occasion for taking stock of economic and monetary policy. Tonight provides a timely occasion. We have reached an important stage in the development of the economy; we can discern some benefits beginning to emerge from the policies which have been pursued, and can also weigh up more clearly some problems and risks ahead. On the financial side, the sudden spurt in monetary growth following the end of the corset caused some confusion and uncertainty. The Bank for its part therefore has, as I am aware, received a good deal of advice-from opposite sides, both for being lax and not controlling money; and for having too tight a policy, with interest rates too high; and as regards its methods of control. Such matters as these cannot be put into perspective every day, and I particularly welcome the opportunity which this occasion affords to say something about them.