John Kay

The elevation of credibility into a central economic doctrine has turned a sensible point – that policy stability is good for both business and households – into a dogma that endangers stability.

The presidency of the French Republic is a job description written for one man – Charles de Gaulle – and no one else has since filled the post with much distinction.

When we make hiring decisions, or construct risk maps, or undertake investment appraisals we complete templates, the purpose of which is not to help us manage or decide but to rationalise what we already believe we know.

The petty, pragmatic character of Scottish concerns is appropriate, and in a sense reassuring. We should feel relieved that the passions expressed at Bannockburn, or Waterloo, or that prompted Paul Revere’s ride, no longer feature in the politics of western Europe.

Keynes famously advocated reducing unemployment by employing people to dig holes and fill them in again: today it would be enough to employ them to fill the potholes that are already there.

On the 14th March John gave evidence to the Scottish Affairs Committee as part of its enquiry into The Referendum on Separation for Scotland. Martin Wolf, chief economics commentator for the Financial Times, was also in attendance. The committee focused on the economic issues that would arise in relation to Scottish independence. Watch it in [...]

This month’s budget in Britain will provoke yet another round of debate on austerity versus stimulus. But the issue of how we spend what we have is more important than the issue of what we spend.

On the 7th February, John took part in an Intelligence Squared event entitled, ‘What hope for the economy?’, in which Evan Davis grilled a panel of eminent economists and leading figures from the world of business and finance. They discussed the economic crisis, banking regulation and the future of capitalism. You can watch the full debate here.

Financial markets are an effective discipline on profligate individuals and states because markets cannot easily be bullied or lobbied, and their threat to make the cost of funds prohibitive is effective.

If the eurozone had quickly recognised defeat in Greece, it would have suffered a manageable failure and learnt an important lesson for the future. Instead it has followed the martingale.