Tuesday, January 06, 2009
Sir Alan Walters
Posted by David Smith at 08:45 AM
Category: Thoughts and responses

walters.jpg

Sir Alan Walters, who died at the weekend aged 82, had a considerable influence on UK economic policy over two decades. In the early 1970s, along with David Laidler, he warned that runaway growth in the money supply would lead to a great inflation in the UK. At the time such views were deeply unfashionable, but he was right.

In the early 1980s, as Margaret Thatcher's personal economic adviser, he helped frame the austerity budget of 1981, having earlier pointed out the shortcomings of the government's monetarist experiment. He advised that policy in 1980 was far tighter than necessary. In the late 1980s, when he returned in that role, he attacked the folly of shadowing the D-mark by Nigel Lawson.

I had many dealings with him over the years. He was sharp, bright and modest and always a pleasure to talk to.