Scott Sumner’s Adam Smith Lecture, delivered last week, is now online. For my money it’s the best outline of his view of the Great Recession and the correct role of monetary policy that I have yet seen. Scott’s presentation can be downloaded here, and Scott wrote about his trip for TheMoneyIllusion here.
Milton Friedman was born 101 years ago today. The video above isn’t as snappy as many of the great Friedman videos online, but I like it because it shows the kind of libertarian Friedman was. Instead of dismissing any policy that fell short of abolishing the state as ‘socialism’, he came up with innovative and practicable steps towards a freer and richer world. His policy proposals are still relevant and fresh (unlike many of FA Hayek’s, for instance) — as a replacement for existing welfare, a Negative Income Tax today could liberate people from the benefits trap. Daniel Hannan’s piece on Friedman and school vouchers — another idea as fresh and important today as it was when he first proposed it — is well worth reading too.
In a video out this morning, City A.M. editor Allister Heath calls on Mark Carney to bring the Bank of England into the twentieth century by reforming regulation to emphasise greater interaction with the financial sector, opening up its culture to something less dictatorial, and monetary policy to something more like Nominal GDP Targeting or a Productivity Norm.