Monday 22nd June 1981
MBC [Monetary Base Control] meeting with Bank of England (John Fforde etc.) and Middleton. Preparing for PM s seminar. Looks like we will have to use M1 for interest rate based movements.
Andrew Brittain [sic: Britton] wanted to use forecasts of exchange rate income etc to fix base - but I countered with the experience of exchange rates in 1980! Won that point especially with Fforde and Middleton. We should base the movement only on history.
Lunch at Barclays
Worked on draft for PM s speech: Reflation not the cure etc. John [John Hoskyns] and Ronnie [Ronald Millar] produce a draft while we produce gobbets - finished at 12.30am.