From today’s mailman:
Dear Ms McNeill
Thank you for your letter dated 26 July 2008 about the supply of money, to the Chancellor of the Exchequer. We apologise it has taken this length of time to reply. The Chancellor receives a very high volume of correspondence and so it is not practical for him to respond to all the letters he receives. Therefore, I have been asked to reply on his behalf.
Your question is related to the operation of monetary policy, which is run independently of Government by the Bank of England in accordance with the Bank of England Act 1998. Therefore, it would be inappropriate for Government to comment on the Bank of England’s actions.
The Government has no plan to investigate the impact of the current composition of the UK money supply. However, we continue to monitor the situation.
Macroeconomic & Fiscal Policy Directorate