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TIM CONGDON is an economist and businessman, who has for over thirty years been a strong advocate of sound money and free markets. He is often regarded as the U.K.’s leading “monetarist” economist. From 1992 to 1997 he was a member of the U.K.’s Treasury Panel of Independent Forecasters (the so-called “wise men”), which advised the chancellor of the exchequer in a successful period for British economic policy. Tim has recently set up a new economics consultancy business, International Monetary Research Ltd. (www.imr-ltd.com). He is chief executive of the company, which is his latest venture.
The period since mid-2007 (“the Great Recession”) has seen the worst macroeconomic turmoil since the 1930s. How is the lurch from stability to instability to be explained? What are the intellectual origins of the policy mistakes that led to the Great Recession?