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364 Economists on Economic Policy

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  • Geoffrey Wood

Abstract

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.

Suggested Citation

  • Geoffrey Wood, 2006. "364 Economists on Economic Policy," Econ Journal Watch, Econ Journal Watch, vol. 3(1), pages 137-147, January.
    • Handle: RePEc:ejw:journl:v:3:y:2006:i:1:p:137-147
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    References listed on IDEAS

    as
    1. Capie, Forrest, 1986. "Conditions in which very rapid inflation has appeared," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 24(1), pages 115-168, January.
    2. Forrest Capie & Geoffrey Wood, 2002. "Price Controls in War and Peace: A Marshallian Conclusion," Scottish Journal of Political Economy, Scottish Economic Society, vol. 49(1), pages 39-60, February.
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    More about this item

    Keywords

    monetary policy; fiscal policy; inflation;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation

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