Pay Restraint and ‘Monetarism’

\My Lords, since we last debated the economic situation we have had a glimpse into the abyss. There was a Monday a few weeks ago when the official slogan still was ‘no panic’. A day or two after that, a statement was issued showing the utmost apprehension. Now we have this document which is the subject of discussion today and of a Bill which we shall be discussing tomorrow. I accept the exortation of the noble Lord, Lord Feather, in that I would wish to avoid cynicism in this respect. I would concede that what we have to discuss at least shows an awareness of danger and some willingness to cope with it. Moreover, it cannot be said too frequently that the period of intense danger has ceased, but if anything goes seriously wrong with the present policy, the alarm which gave rise to the statement and what has succeeded it might easily be reawakened. Therefore, even if one has very considerable reservations about this policy and its future—as, indeed, I have—it is desirable this evening to choose one’s words very carefully and to say nothing to make things more difficult for the fine men at the Bank of England who are fighting against possible catastrophe for us and our children. Also, I would urge that nothing should be said to impair any possible solidarity among men of good will in grappling with the problems of the future, and discussing them with candour and some detachment.