She Refused to Listen: Inside Thatcher's Monetarism Experiment

Nov 4, 2024 | Join Sir Tim Lankester, Margaret Thatcher's first private secretary for economic affairs, as he discusses his new book "Inside Thatcher's Monetarism Experiment" with IEA Executive Director Tom Clougherty. Drawing from his first-hand experience in the early years of the Thatcher government, Sir Tim examines the adoption of monetarism as the primary tool for fighting inflation in 1979-81, arguing that while the broader economic reforms of the period were successful, the strict adherence to monetary targets led to unnecessarily high unemployment.

In this discussion, Sir Tim reflects on his transition from studying Keynesian economics at Cambridge to becoming what he calls a "disbelieving monetarist" in government. He provides insights into Margaret Thatcher's unwavering conviction in monetarist theories, her hands-on involvement in monetary policy, and her qualities as a boss. The conversation also explores the economic context of the 1970s, including high inflation, industrial unrest, and the 1976 IMF loan that set the stage for the monetarist experiment.

The event concludes with a lively Q&A session covering topics including current monetary policy, quantitative easing, and the long-term impact of the Thatcher government's economic reforms. Sir Tim offers a balanced assessment of the period, praising the supply-side reforms while maintaining his criticism of what he terms "hard monetarism" in the early years of Thatcher's premiership.