Wednesday 25th November 1981
Alan Bailey
Burns vs CPRS - great confusion over MTFS [Medium Term Financial Strategy] and whether our policy is to nip the recovery in the bud
I prepared a paper showing that MTFS does no such thing. Burns seemed to regard inflation rate as exogenous and therefore any squeeze applies to real output - and so lays himself open to this charge by William Keagan [sicWilliam Keegan] of Observer.
Bernard Ingham very worried about what to say!
Ian Gow says I must stay longer than 2 years.