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364 Economists on Economic Policy

  • Geoffrey Wood
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    In 1981, 364 economists signed a letter to the London Times, objecting to the Thatcher Government’s anti-inflation policy. This article considers both the policy and the objections. The policy was basically a monetarist one, grounded on the view that inflation could be controlled only by controlling money. It is argued that theory as well as the evidence available at the time supported that approach. In contrast, while the alternatives proposed were vague, they seemed to be inconsistent with the facts. Further, in defiance of the predictions of the letter, inflation came down and the British economy did not stay in recession.

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    Article provided by Econ Journal Watch in its journal Econ Journal Watch.

    Volume (Year): 3 (2006)
    Issue (Month): 1 (January)
    Pages: 137-147

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    Handle: RePEc:ejw:journl:v:3:y:2006:i:1:p:137-147
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