I hate to disagree with the Institute of Economic Affairs, an important institution, which for decades has promoted good thinking on economics.
But on monetary policy, the institute is promoting socialism.
Since 1997, it has hosted a Shadow Monetary Policy Committee (SMPC). This committee evidentially believes that the problem with our economy is not the existence of central planners who intervene. It seems to be their position that the economy would do well if only wiser people, like them, were in charge.
No one much mentions this, but Milton Friedman, the father of monetarism, opposed the existence of central banks. While speaking favourably of one US Federal Reserve chairman, Prof. Friedman said that the well-being of our economy shouldn’t rely on one individual being good. He favoured the money supply being decided by computer. Meanwhile, F A Hayek – in a little-promoted IEA publication – favoured privatising the currency and allowing competition.
The Shadow Monetary Policy Committee predates the current Director General of the IEA, Mark Littlewood, who is talented and has called on the Prime Minister to read Hayek. As a Hayekian, does he really believe that the SMPC is doing any good?
Mark, this statist committee is hated by supporters of the IEA. It is surely time to scrap it – and start promoting the ideas of Milton Friedman and F A Hayek. After all, what is the chance of getting the Bank of England to stop promoting monetary socialism, when the IEA is promoting the same?