TNAG-0735-FCO40-939-Policy-objective-for-the-developing-of-Hong-Kong-in-the-1980-1978 — Page 103

Debate on the Governor's Annual Address

Speech by the Honourable the Financial Secretary

in Legislative Council on Thursday, 16th November 1978

Introduction

Summary H.013/4

Sae (10

RECEIVED IN MAGISTRY NO. 51

130541978 PARAGRAPHS

DAX OFFICE

INDEX

REGISTRY

Action Taxen

I

Inflation”

(1) Unofficial Members' worries

(2)

Measurement of "inflation":

2

3

(a)

General price level

(b)

Consumer prices

LO

(c)

Prices of investment goods

4

5

- 6

7

(a)

Prices of imported raw materials and semi-manufactures

8

(e)

Wage rates, profit margins and export prices

9

11

(3)

(4)

Absence so far of imported inflation Incipient threat of inflation:

12

13

(a)

(5)

(a)

(b)

Statistics

(c)

(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

14

15

-

18

19

20

21

22

-

24

(M2)

25

26

Changes in interest rates Control of the money supply

Management of the public finances

27

-

29

30

-

32

31

- 35

i