Debate on the Governor's Annual Address

Speech by the Honourable the Financial Secretary

in Legislative Council on Thursday, 16th November 1978

Introduction

I

Summary

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REDAVAN

PARAGRAPHS

RAPHS

1

Inflation

A

ction Texei

2

3

(1) Unofficial Members' worries

(2)

Measurement of "inflation":

(a)

General price level

(b)

Consumer prices

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6

(c)

Prices of investment goods

7

(a)

Prices of imported raw materials and semi-manufactures

8

(e) Wage rates, profit margins and

export prices

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11

(3)

(4)

Absence so far of imported inflation Incipient threat of inflation:

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(a)

(5)

(a)

(b)

(c) Changes in interest rates

(a)

(6)

Depreciation of the Hong Kong dollar

(b) Pressure of domestic demand

(c) Adverse trade balance and tourism

Growth of the money supply:

Determinants

Statistics (M2)

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15

18

19

20

21

22

-

24

25

26

27

29

Control of the money supply Management of the public finances

30

31

32

- 35

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14

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