Alan Walters
Encyclopedia
Professor Sir Alan Arthur Walters (17 June 1926 – 3 January 2009) was a British economist
, best known as the former Chief Economic Adviser to Prime Minister
Margaret Thatcher
from 1981 to 1983 and again in 1989 after his return from the USA.
; his father was a Communist and a grocer
who sold goods from a van. He failed his 11-plus and attended Alderman Newton's School in Leicester
, leaving at fifteen to work as a machine operator in a shoe factory. He joined the British Army as a private.
at University College Leicester and then went to Nuffield College, Oxford
, where he took an MA
in Economics
. On leaving Nuffield in 1951, he took up a post to teach Statistics at Birmingham University, later becoming professor of econometrics
and statistics there in the early 1960s. He was one of the first British economists to argue that money
was "of considerable importance" to economic activity, a view that became more widespread during "the Great Inflation" of the 1970s. He argued forcefully that Britain should maintain strict monetary targets, and that the money supply should not be manipulated for political reasons.
After serving as a professor at the London School of Economics
from 1967 to 1976, where he was Sir Ernest Cassel
Professor of Economics, Walters became an economic adviser to the World Bank
and a Professor in the Economics Department at The Johns Hopkins University
.
One of his most important contributions to the economic theory was to demonstrate empirically that for many industries the costs, at the high-scale, ends of the long-run cost curve is essentially constant or even declining. This was established in his article published by the Econometrica magazine, Jan-Apr. 1963, 31, 1-66 "Production and Cost Functions: An Econometric Survey"
, and advised on that year's budget
, in which taxes were increased during a recession. This policy produced much criticism at the time but has since been credited with enabling the sustained economic growth of the 1990s. He left this role in 1983 to join the American Enterprise Institute
and, although he returned to advise Thatcher in 1989, his differences with the policies of the Chancellor of the Exchequer
, Nigel Lawson
, led to the resignation of both later in that year.
Walters supported the controversial and ill-failed poll tax
, a measure that eventually led to Thatcher's downfall.
He was an accomplished pianist, enjoying playing the works of Chopin and Beethoven. He also collected Thai porcelain and was a keen tennis player.
Walters was Vice Chairman and Director of AIG Trading Group, Inc
.
Towards the end of his life, he suffered from Parkinson's disease
and died aged 82 at his home on 3 January 2009 after a short illness. Upon hearing of his death, Lady Thatcher described him as "radical, fearless" and the "finest of friends".
Economist
An economist is a professional in the social science discipline of economics. The individual may also study, develop, and apply theories and concepts from economics and write about economic policy...
, best known as the former Chief Economic Adviser to Prime Minister
Prime minister
A prime minister is the most senior minister of cabinet in the executive branch of government in a parliamentary system. In many systems, the prime minister selects and may dismiss other members of the cabinet, and allocates posts to members within the government. In most systems, the prime...
Margaret Thatcher
Margaret Thatcher
Margaret Hilda Thatcher, Baroness Thatcher, was Prime Minister of the United Kingdom from 1979 to 1990...
from 1981 to 1983 and again in 1989 after his return from the USA.
Early life
Walters was born in LeicesterLeicester
Leicester is a city and unitary authority in the East Midlands of England, and the county town of Leicestershire. The city lies on the River Soar and at the edge of the National Forest...
; his father was a Communist and a grocer
Grocer
A grocer is a bulk seller of food. Beginning as early as the 14th century, a grocer was a dealer in comestible dry goods such as spices, pepper, sugar, and cocoa, tea and coffee...
who sold goods from a van. He failed his 11-plus and attended Alderman Newton's School in Leicester
Leicester
Leicester is a city and unitary authority in the East Midlands of England, and the county town of Leicestershire. The city lies on the River Soar and at the edge of the National Forest...
, leaving at fifteen to work as a machine operator in a shoe factory. He joined the British Army as a private.
Academic career
Walters studied statisticsStatistics
Statistics is the study of the collection, organization, analysis, and interpretation of data. It deals with all aspects of this, including the planning of data collection in terms of the design of surveys and experiments....
at University College Leicester and then went to Nuffield College, Oxford
Nuffield College, Oxford
Nuffield College is one of the constituent colleges of the University of Oxford in England. It is an all-graduate college and primarily a research establishment, specialising in the social sciences, particularly economics, politics and sociology. It is a research centre in the social sciences...
, where he took an MA
Master of Arts (postgraduate)
A Master of Arts from the Latin Magister Artium, is a type of Master's degree awarded by universities in many countries. The M.A. is usually contrasted with the M.S. or M.Sc. degrees...
in Economics
Economics
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...
. On leaving Nuffield in 1951, he took up a post to teach Statistics at Birmingham University, later becoming professor of econometrics
Econometrics
Econometrics has been defined as "the application of mathematics and statistical methods to economic data" and described as the branch of economics "that aims to give empirical content to economic relations." More precisely, it is "the quantitative analysis of actual economic phenomena based on...
and statistics there in the early 1960s. He was one of the first British economists to argue that money
Monetarism
Monetarism is a tendency in economic thought that emphasizes the role of governments in controlling the amount of money in circulation. It is the view within monetary economics that variation in the money supply has major influences on national output in the short run and the price level over...
was "of considerable importance" to economic activity, a view that became more widespread during "the Great Inflation" of the 1970s. He argued forcefully that Britain should maintain strict monetary targets, and that the money supply should not be manipulated for political reasons.
After serving as a professor at the London School of Economics
London School of Economics
The London School of Economics and Political Science is a public research university specialised in the social sciences located in London, United Kingdom, and a constituent college of the federal University of London...
from 1967 to 1976, where he was Sir Ernest Cassel
Ernest Cassel
Sir Ernest Joseph Cassel, GCB, GCMG, GCVO, PC was a German-born British merchant banker and capitalist.-Biography:...
Professor of Economics, Walters became an economic adviser to the World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
and a Professor in the Economics Department at The Johns Hopkins University
Johns Hopkins University
The Johns Hopkins University, commonly referred to as Johns Hopkins, JHU, or simply Hopkins, is a private research university based in Baltimore, Maryland, United States...
.
One of his most important contributions to the economic theory was to demonstrate empirically that for many industries the costs, at the high-scale, ends of the long-run cost curve is essentially constant or even declining. This was established in his article published by the Econometrica magazine, Jan-Apr. 1963, 31, 1-66 "Production and Cost Functions: An Econometric Survey"
Political
In 1981, he was asked to become an economic adviser to Margaret ThatcherMargaret Thatcher
Margaret Hilda Thatcher, Baroness Thatcher, was Prime Minister of the United Kingdom from 1979 to 1990...
, and advised on that year's budget
Budget
A budget is a financial plan and a list of all planned expenses and revenues. It is a plan for saving, borrowing and spending. A budget is an important concept in microeconomics, which uses a budget line to illustrate the trade-offs between two or more goods...
, in which taxes were increased during a recession. This policy produced much criticism at the time but has since been credited with enabling the sustained economic growth of the 1990s. He left this role in 1983 to join the American Enterprise Institute
American Enterprise Institute
The American Enterprise Institute for Public Policy Research is a conservative think tank founded in 1943. Its stated mission is "to defend the principles and improve the institutions of American freedom and democratic capitalism—limited government, private enterprise, individual liberty and...
and, although he returned to advise Thatcher in 1989, his differences with the policies of the Chancellor of the Exchequer
Chancellor of the Exchequer
The Chancellor of the Exchequer is the title held by the British Cabinet minister who is responsible for all economic and financial matters. Often simply called the Chancellor, the office-holder controls HM Treasury and plays a role akin to the posts of Minister of Finance or Secretary of the...
, Nigel Lawson
Nigel Lawson
Nigel Lawson, Baron Lawson of Blaby, PC , is a British Conservative politician and journalist. He was a Member of Parliament representing the constituency of Blaby from 1974–92, and served as the Chancellor of the Exchequer in the government of Margaret Thatcher from June 1983 to October 1989...
, led to the resignation of both later in that year.
Walters supported the controversial and ill-failed poll tax
Poll tax
A poll tax is a tax of a portioned, fixed amount per individual in accordance with the census . When a corvée is commuted for cash payment, in effect it becomes a poll tax...
, a measure that eventually led to Thatcher's downfall.
Personal life
In 1975 Walters married Margaret Patricia Wilson, known as Paddie. He had a daughter by a previous marriage. He was knighted in 1983.He was an accomplished pianist, enjoying playing the works of Chopin and Beethoven. He also collected Thai porcelain and was a keen tennis player.
Walters was Vice Chairman and Director of AIG Trading Group, Inc
American International Group
American International Group, Inc. or AIG is an American multinational insurance corporation. Its corporate headquarters is located in the American International Building in New York City. The British headquarters office is on Fenchurch Street in London, continental Europe operations are based in...
.
Towards the end of his life, he suffered from Parkinson's disease
Parkinson's disease
Parkinson's disease is a degenerative disorder of the central nervous system...
and died aged 82 at his home on 3 January 2009 after a short illness. Upon hearing of his death, Lady Thatcher described him as "radical, fearless" and the "finest of friends".