Recent developments in the domestic economy present difficulties of interpretation on both the real and the financial side. Recovery from the coal dispute, the end-year surge in exports, and the bunching of investment in the first quarter of this year all make it difficult to assess underlying trends in output and productivity. The swing in the exchange rate over the last year, and the recent divergence of input and retail price indices, contribute to uncertainty about underlying movements in nominal income. This Assessment considers these factors, as well as developments in financial markets, as they bear on the interpretation of the divergent monetary aggregates.
Published on
01 June 1985
General assessment