^{page 9 note (1)} National Institute Economic Review, no. 68, May 1974, pages 29-31.

^{page 9 note (2)} See National Institute Economic Review, no. 64, May 1973, pages 20-24 for a fuller discussion.

^{page 11 note (1)} If the effective change came about solely as a result of an appreciation of the deutschemark, for example, only com petitive import prices would be affected-not those of raw materials priced in dollars.

^{page 20 note (1)} See National Institute Economic Review, no. 68, May 1974, page 43 for a fuller explanation of our definition. We think it more useful than the ‘oil deficit’ given in the trade returns, where it is merely defined as the deficit in petroleum and petroleum products. The fact that this accounts for the whole deficit on current account gives, we think, a misleading impression that there is no balance of payments problem. Even the ‘oil deficit’ would be a problem if the UK were not creditworthy.

^{page 21 note (1)} M. A. King, ‘The UK profits crisis: myth or reality?’ Economic Journal, March 1975, forthcoming.

^{page 22 note (1)} The Times, 7 November 1974.

^{page 22 note (2)} This appears to be the assumption underlying the recent critique of the Merrett and Sykes position by Godley and Wood. See Wynne Godley and Adrian Wood, ‘Stock appreciation and the crisis of British industry’, University of Cambridge, Department of Applied Economics, October 1974.