Experts1? attack policy

Press, 31 March 1981, Page 8

Experts 1 ? attack policy

NZPA London A total of 364 university economists, including some of the foremost names in the profession, yesterday took the unprecedented step of issuing a public statement condemning the British Government’s economic policy. The signatories include five post-war Government chief economic advisors, 76 professors, and the president and nine vice-presidents of the Royal Economic Society. The statement, which amounts to one of the most powerful indictments of the economic policies of ahv Government, has been sent to both the Prime Minister and the Chancellor of the Exchequer. It questions the whole basis of the Government's policy, warns that it threatens "social and political stability” and argues that monetarism must be rejected as a matter of urgency. Among the signatories are Professor James Meade, Lord Roberihall, Sir Alec Cairncross, Sir Bryan Hopkin, and Sir Fred Atkinson. In full, the statement says: “We, who. are all present or retired members of the economic staffs of British universities are convinced that: "There is no basis in economic theory or supporting evidence for the Government’s belief that by deflating demand they will bring inflation permanently under control and thereby induce an automatic recovery in output and employment. "Present policies will deepen the depression, erode the industrial base of our economy and threaten its social and political stability. “There are alternative policies. “The time has come to reject monetarist policies and consider urgently which alternative offers the best hope of sustained economic recovery.” In all, signatures have come from 36 universities. The idea of a public statement came from Professors Robert Neild and Frank Hahn, of Cambridge, who, three days after the. Budget, sent it with a covering letter to various universities. In their letter they said: “We believe that a large number of economists in British universities, whatever their politics, think the Government’s present economic policies to be wrong and that, for the sake of the country — and the profession — it is time we all spoke up.”