§ Mr. Stephen O'Brien
To ask the Chancellor of the Exchequer what estimate he has made of the rise in the tax burden necessary to offset inflationary pressures which would otherwise result in(a) a half per cent. rise in inflation, (b) a one per cent. rise inflation, (c) a one and a half per cent. rise in inflation and (d) a two per cent. rise in inflation, assuming that a decision to implement a discretionary fiscal policy was taken, as described in the Treasury document Fiscal stabilisation and EMU, and assuming a neutral monetary policy. 371W
§ Mr. Boateng
In the event that a discretionary fiscal policy response was needed within EMU, its likely size would depend on a number of factors, including the nature of the economic shock, the degree of wage and price flexibility within the UK, and which fiscal instrument was being used.