| Abstract: | This essay re-examines the resignation of the Conservative TreasuryMinisters in January 1958. It focuses on the political economyof both party and official discussion of inflation, and paysparticular attention to the issue of whether the debate In 1957-8witnessed a dispute between ‘monetarists’ and ‘Keynesians’.it shows that the Chancellor, Thorneycroft, and other Conservatives,including Macmillan, saw the contribution of the monetary systemto inflation in terms of inadequate government control overthe banking system and private credit as much as in terms ofthe level of public expenditure. It concludes that the theoreticaland policy assumptions underpinning the 1957–8 debatehave no direct link with, and did not anticipate, Thatcheriteideas, but that there was an indirect link in terms of sharedperceptions of the social politics of inflation.
* I would like to express my thanks to the Minda de GunzbergCenter for European Studies. Harvard University for appointingme to a Visiting Scholarship during my sabbatical in the autumnof 1997, during which time this article was written. |
