Institute of Economic Affairs
Encyclopedia
The Institute of Economic Affairs (IEA), founded in 1955, styles itself the UK's pre-eminent free-market think-tank. Its mission is to improve understanding of the fundamental institutions of a free society
by analysing and expounding the role of markets in solving economic and social problems.
read a summary of The Road to Serfdom
by Friedrich Hayek
in the front of the April issue of Reader’s Digest. Later that year Fisher visited Hayek at the London School of Economics. The economist dissuaded Fisher from embarking on a political and parliamentary career in order to try and prevent the spread of socialism
and central planning. Instead, Hayek suggested the establishment of a body which could engage in research and reach the intellectuals with reasoned argument. If the intellectuals could be convinced of the benefits of free-markets, the politicians would follow.
In June 1955 The Free Convertibility of Sterling by George Winder was published, with Fisher signing the foreword as Director of the IEA. Later that year, in November, the IEA’s Original Trust Deed was signed by Fisher, John Harding and Oliver Smedley
. Ralph Harris
(later Lord Harris) began work as part-time General Director in January 1957. He was joined in 1958 by Arthur Seldon
, who was initially appointed Editorial Advisor and became the Editorial Director in 1959.
The IEA has also played an active role in developing similar institutions across the globe. A world-wide network of over one hundred institutions in nearly eighty countries has been created. All are independent but share in the IEA's mission.
Many IEA ideas first considered controversial have become almost conventional wisdom, from the abolition of exchange controls and the repeal of resale price maintenance
to congestion charging and central bank independence. Andrew Marr
called the Institute "undoubtedly the most influential think tank in modern British history"
More broadly, IEA authors claim to have paved the way for the conquering of inflation, the reform of trade unions and the privatisation of the commanding heights of the economy. Today IEA authors are concerned with regulation issues, the reform of public services and a market driven vision of European integration.
The Social Affairs Unit
was established in December 1980 as an offshoot of the Institute of Economic Affairs, in order to carry the IEA's economic ideas onto the battleground of sociology
. "Within a few years the Social Affairs Unit became independent from the IEA, acquiring its own premises." In 1986 the IEA created a Health and Welfare Unit to focus on these aspects of social policy.
requested the sources of funding in 2011, the IEA declined to reveal these.
The Journal of Economic Affairs was first published in October 1980 and continues to be published to the present day. IEA publications are sold throughout the world - reprinted and translated into over twenty-five languages. In the UK, many IEA titles have become mandatory in university and classroom reading lists.
IEA papers are arranged in a series of titles, each with its own 'brand image'. The main series of publications is complemented by the Institute's quarterly journal Economic Affairs. http://www.wiley.com
The Institute's research activities are aided by an international Academic Advisory Council and a panel of Honorary Fellows. All IEA papers are subjected to the same rigorous independent blind-refereeing process that is used by leading academic journals. The views expressed in IEA papers are those of the authors and not of the Institute (which has no corporate view), its trustees, directors or advisers.
Some twelve economists engaged in the IEA's work have gone on to win the Nobel Prize in Economics: Gary Becker
, James M. Buchanan
, Ronald Coase
, Milton Friedman
, Friedrich Hayek
, John Hicks
, James Meade
, Douglass C. North, Elinor Ostrom
, Vernon L. Smith
, George Stigler
and Oliver E. Williamson
. The condensed version of Hayek's The Road to Serfdom has been republished by the IEA http://www.iea.org.uk/record.jsp?type=publication&ID=279, while the work of Nobel Prize Winners is reprinted in The Road to Economic Freedomhttp://www.edward-elgar.co.uk with a foreword by Margaret Thatcher http://www.margaretthatcher.org. The IEA has also recently published groundbreaking research in areas such as business ethics, economic development, education, pensions, regulation, taxation and transport.
In September 2008, the Institute started the IEA blog http://blog.iea.org.uk as a further means to disseminate free-market ideas.
In October 2009, the IEA appointed Mark Littlewood as its next Director General. Littlewood took up the post on 1 December 2009.
), from Working Lunches to Political Economy Suppers.
The 20th Annual Hayek Lecture, to be delivered on July 5th 2011, will be given by Robert Barro
of Harvard University. Barro is considered one of the founders of new classical macroeconomics and is the current Paul M. Warburg Professor of Economics at Harvard.
Key personnel:
Other members of the Committee are: Roger Bootle (Deloitte and Capital Economics Ltd), Tim Congdon (International Monetary Research Ltd.), Jamie Dannhauser (Lombard Street Research), Anthony J Evans (ESCP Europe), John Greenwood (Invesco Asset Management), Ruth Lea (Arbuthnot Banking Group), Andrew Lilico (Europe Economics), Patrick Minford (Cardiff Business School, Cardiff University), Gordon Pepper (Lombard Street Research and Cass Business School), Akos Valentinyi (Cardiff Business School, Cardiff University), Peter Warburton (Economic Perspectives Ltd), Mike Wickens (University of York and Cardiff Business School) and Trevor Williams (Lloyds TSB Corporate Markets).
Free society
In a theoretical free society, all individuals act voluntarily. Individuals in a free society find it safe to be unpopular. This can be elaborated in terms of freedom of speech - if people have a right to express their views without fear of arrest, imprisonment, or physical harm.In a free society,...
by analysing and expounding the role of markets in solving economic and social problems.
History
In 1945 Antony FisherAntony Fisher
Sir Antony Fisher was one of the most influential background players in the global rise of libertarian think-tanks during the second half of the twentieth century, founding the Institute of Economic Affairs and the Atlas Economic Research Foundation. Through Atlas, he helped establish up to 150...
read a summary of The Road to Serfdom
The Road to Serfdom
The Road to Serfdom is a book written by the Austrian-born economist and philosopher Friedrich von Hayek between 1940–1943, in which he "warned of the danger of tyranny that inevitably results from government control of economic decision-making through central planning," and in which he argues...
by Friedrich Hayek
Friedrich Hayek
Friedrich August Hayek CH , born in Austria-Hungary as Friedrich August von Hayek, was an economist and philosopher best known for his defense of classical liberalism and free-market capitalism against socialist and collectivist thought...
in the front of the April issue of Reader’s Digest. Later that year Fisher visited Hayek at the London School of Economics. The economist dissuaded Fisher from embarking on a political and parliamentary career in order to try and prevent the spread of socialism
Socialism
Socialism is an economic system characterized by social ownership of the means of production and cooperative management of the economy; or a political philosophy advocating such a system. "Social ownership" may refer to any one of, or a combination of, the following: cooperative enterprises,...
and central planning. Instead, Hayek suggested the establishment of a body which could engage in research and reach the intellectuals with reasoned argument. If the intellectuals could be convinced of the benefits of free-markets, the politicians would follow.
In June 1955 The Free Convertibility of Sterling by George Winder was published, with Fisher signing the foreword as Director of the IEA. Later that year, in November, the IEA’s Original Trust Deed was signed by Fisher, John Harding and Oliver Smedley
Oliver Smedley
Major Oliver Smedley MC was a British businessman involved in classical liberal politics and pirate radio. He was acquitted of the murder of a business rival on the grounds of self-defence.-Military:...
. Ralph Harris
Ralph Harris, Baron Harris of High Cross
Ralph Harris, Baron Harris of High Cross was a British economist. He was head of the Institute of Economic Affairs from 1957 to 1988...
(later Lord Harris) began work as part-time General Director in January 1957. He was joined in 1958 by Arthur Seldon
Arthur Seldon
Dr Arthur Seldon CBE was joint founder president, with Ralph Harris, of the Institute of Economic Affairs, where he directed academic affairs for 30 years....
, who was initially appointed Editorial Advisor and became the Editorial Director in 1959.
The IEA has also played an active role in developing similar institutions across the globe. A world-wide network of over one hundred institutions in nearly eighty countries has been created. All are independent but share in the IEA's mission.
Many IEA ideas first considered controversial have become almost conventional wisdom, from the abolition of exchange controls and the repeal of resale price maintenance
Resale price maintenance
Resale price maintenance is the practice whereby a manufacturer and its distributors agree that the latter will sell the former's product at certain prices , at or above a price floor or at or below a price ceiling...
to congestion charging and central bank independence. Andrew Marr
Andrew Marr
Andrew William Stevenson Marr is a Scottish journalist and political commentator. He edited The Independent for two years until May 1998, and was political editor of BBC News from 2000 until 2005....
called the Institute "undoubtedly the most influential think tank in modern British history"
More broadly, IEA authors claim to have paved the way for the conquering of inflation, the reform of trade unions and the privatisation of the commanding heights of the economy. Today IEA authors are concerned with regulation issues, the reform of public services and a market driven vision of European integration.
The Social Affairs Unit
Social Affairs Unit
The Social Affairs Unit is a right-leaning think tank in the United Kingdom. Founded in 1980 as an offshoot of the Institute of Economic Affairs, it publishes books on a variety of social issues...
was established in December 1980 as an offshoot of the Institute of Economic Affairs, in order to carry the IEA's economic ideas onto the battleground of sociology
Sociology
Sociology is the study of society. It is a social science—a term with which it is sometimes synonymous—which uses various methods of empirical investigation and critical analysis to develop a body of knowledge about human social activity...
. "Within a few years the Social Affairs Unit became independent from the IEA, acquiring its own premises." In 1986 the IEA created a Health and Welfare Unit to focus on these aspects of social policy.
Funding
The IEA is a registered educational and research charity. As such it is entirely funded by voluntary donations from individuals, companies and foundations who want to support its work, plus income from book sales and conferences. It does no contract work, accepts no money from government and is entirely independent of any political party or group. However, when George MonbiotGeorge Monbiot
George Joshua Richard Monbiot is an English writer, known for his environmental and political activism. He lives in Machynlleth, Wales, writes a weekly column for The Guardian, and is the author of a number of books, including Captive State: The Corporate Takeover of Britain and Bring on the...
requested the sources of funding in 2011, the IEA declined to reveal these.
Publications
Arthur Seldon proposed a series of Papers for economists to explore the market approach to the issues of the day. Eventually, these emerged as the Hobart Papers; 154 had been published by August 2006. In addition, 32 Hobart Paperbacks had been released along with 139 Occasional Papers, 61 Readings and 61 Research Monographs. A large number of other titles has been published in association with trade and university presses.The Journal of Economic Affairs was first published in October 1980 and continues to be published to the present day. IEA publications are sold throughout the world - reprinted and translated into over twenty-five languages. In the UK, many IEA titles have become mandatory in university and classroom reading lists.
IEA papers are arranged in a series of titles, each with its own 'brand image'. The main series of publications is complemented by the Institute's quarterly journal Economic Affairs. http://www.wiley.com
The Institute's research activities are aided by an international Academic Advisory Council and a panel of Honorary Fellows. All IEA papers are subjected to the same rigorous independent blind-refereeing process that is used by leading academic journals. The views expressed in IEA papers are those of the authors and not of the Institute (which has no corporate view), its trustees, directors or advisers.
Some twelve economists engaged in the IEA's work have gone on to win the Nobel Prize in Economics: Gary Becker
Gary Becker
Gary Stanley Becker is an American economist. He is a professor of economics, sociology at the University of Chicago and a professor at the Booth School of Business. He was awarded the Nobel Memorial Prize in Economic Sciences in 1992, and received the United States' Presidential Medal of Freedom...
, James M. Buchanan
James M. Buchanan
James McGill Buchanan, Jr. is an American economist known for his work on public choice theory, for which he received the 1986 Nobel Memorial Prize in Economic Sciences. Buchanan's work initiated research on how politicians' self-interest and non-economic forces affect government economic policy...
, Ronald Coase
Ronald Coase
Ronald Harry Coase is a British-born, American-based economist and the Clifton R. Musser Professor Emeritus of Economics at the University of Chicago Law School. After studying with the University of London External Programme in 1927–29, Coase entered the London School of Economics, where he took...
, Milton Friedman
Milton Friedman
Milton Friedman was an American economist, statistician, academic, and author who taught at the University of Chicago for more than three decades...
, Friedrich Hayek
Friedrich Hayek
Friedrich August Hayek CH , born in Austria-Hungary as Friedrich August von Hayek, was an economist and philosopher best known for his defense of classical liberalism and free-market capitalism against socialist and collectivist thought...
, John Hicks
John Hicks
Sir John Richard Hicks was a British economist and one of the most important and influential economists of the twentieth century. The most familiar of his many contributions in the field of economics were his statement of consumer demand theory in microeconomics, and the IS/LM model , which...
, James Meade
James Meade
James Edward Meade CB, FBA was a British economist and winner of the 1977 Nobel Memorial Prize in Economic Sciences jointly with the Swedish economist Bertil Ohlin for their "Pathbreaking contribution to the theory of international trade and international capital movements."Meade was born in...
, Douglass C. North, Elinor Ostrom
Elinor Ostrom
Elinor Ostrom is an American political economist. She was awarded the 2009 Nobel Memorial Prize in Economic Sciences, which she shared with Oliver E. Williamson, for "her analysis of economic governance, especially the commons." She was the first, and to date, the only woman to win the prize in...
, Vernon L. Smith
Vernon L. Smith
Vernon Lomax Smith is professor of economics at Chapman University's Argyros School of Business and Economics and School of Law in Orange, California, a research scholar at George Mason University Interdisciplinary Center for Economic Science, and a Fellow of the Mercatus Center, all in Arlington,...
, George Stigler
George Stigler
George Joseph Stigler was a U.S. economist. He won the Nobel Memorial Prize in Economic Sciences in 1982, and was a key leader of the Chicago School of Economics, along with his close friend Milton Friedman....
and Oliver E. Williamson
Oliver E. Williamson
Oliver Eaton Williamson is an American economist, professor at the University of California, Berkeley and recipient of the Nobel Memorial Prize in Economic Sciences....
. The condensed version of Hayek's The Road to Serfdom has been republished by the IEA http://www.iea.org.uk/record.jsp?type=publication&ID=279, while the work of Nobel Prize Winners is reprinted in The Road to Economic Freedomhttp://www.edward-elgar.co.uk with a foreword by Margaret Thatcher http://www.margaretthatcher.org. The IEA has also recently published groundbreaking research in areas such as business ethics, economic development, education, pensions, regulation, taxation and transport.
In September 2008, the Institute started the IEA blog http://blog.iea.org.uk as a further means to disseminate free-market ideas.
In October 2009, the IEA appointed Mark Littlewood as its next Director General. Littlewood took up the post on 1 December 2009.
Events
The IEA holds a range of events throughout the year at its 2 Lord North Street headquarters. From book launches and debates to conferences and lectures (including the Annual Hayek LectureHayek lecture
The Hayek Lecture is hosted annually by the Institute of Economic Affairs in memory of Nobel Prize-winning economist Friedrich Hayek.The first Annual Hayek Memorial Lecture was delivered by Jeffrey Sachs of Harvard University in June 1992...
), from Working Lunches to Political Economy Suppers.
The 20th Annual Hayek Lecture, to be delivered on July 5th 2011, will be given by Robert Barro
Robert Barro
Robert Joseph Barro is an American classical macroeconomist and the Paul M. Warburg Professor of Economics at Harvard University. The Research Papers in Economics project ranked him as the 4th most influential economist in the world as of August 2011 based on his academic contributions...
of Harvard University. Barro is considered one of the founders of new classical macroeconomics and is the current Paul M. Warburg Professor of Economics at Harvard.
Shadow Monetary Policy Committee
The Shadow Monetary Policy Committee (SMPC) was established in July 1997, immediately following the creation of the Bank of England Monetary Policy Committee. The SMPC has met on a monthly basis since then. The decisions and minutes of the SMPC are published a few days before the Bank of England’s own interest rate decision each month.Key personnel:
- Chairman - David B. Smith, Visiting Professor, University of Derby.
- Secretary - Professor Kent Matthews, Julian Hodge Professor of Money and Banking, Cardiff Business School, Cardiff University.
- IEA representative - Professor Philip Booth, Editorial and Programme Director of the IEA.
Other members of the Committee are: Roger Bootle (Deloitte and Capital Economics Ltd), Tim Congdon (International Monetary Research Ltd.), Jamie Dannhauser (Lombard Street Research), Anthony J Evans (ESCP Europe), John Greenwood (Invesco Asset Management), Ruth Lea (Arbuthnot Banking Group), Andrew Lilico (Europe Economics), Patrick Minford (Cardiff Business School, Cardiff University), Gordon Pepper (Lombard Street Research and Cass Business School), Akos Valentinyi (Cardiff Business School, Cardiff University), Peter Warburton (Economic Perspectives Ltd), Mike Wickens (University of York and Cardiff Business School) and Trevor Williams (Lloyds TSB Corporate Markets).
Personnel
- Mark LittlewoodMark LittlewoodMark Littlewood is the Director General of the Institute of Economic Affairs . He has formerly been chief press spokesman for the Liberal Democrats and the Pro Euro Conservative Party....
, Director General and Ralph HarrisRalph Harris, Baron Harris of High CrossRalph Harris, Baron Harris of High Cross was a British economist. He was head of the Institute of Economic Affairs from 1957 to 1988...
Fellow - Philip BoothPhilip Booth (economist)Professor Philip Booth is a British economist. He is Editorial and Programme Director at the Institute of Economic Affairs and Professor of Insurance and Risk Management at Cass Business School, City University. His primary areas of research and writing are social insurance, financial regulation...
, Editorial and Programme Director
IEA Fellows
- Terry Arthur, IEA Pensions and Regulation Fellow
- James Bartholomew, IEA Social Policy Fellow
- John BlundellJohn Blundell (economist)John Blundell is the former Director General and Ralph Harris Fellow at the Institute of Economic Affairs. Blundell has been involved in the creation and development of numerous free-market think tanks.-Biography:...
, IEA Distinguished Senior Fellow - Keith Boyfield, IEA Regulation Fellow
- Dr Robert L. Bradley, IEA Energy and Climate Change Fellow
- Professor Tim Congdon, IEA Economics Fellow
- Professor Dennis O'KeeffeDennis O'KeeffeDennis O'Keeffe is Professor of Social Science at the University of Buckingham and current editor of the Salisbury Review. He is Education and Welfare Fellow at the Institute of Economic Affairs and serves on the advisory boards of both the Social Affairs Unit, and FOREST, the smoker's rights...
, IEA Education and Welfare Fellow - Richard D. NorthRichard D. NorthRichard D. North, born 1946, is a UK conservative commentator. He worked for The Independent newspaper as its first environment correspondent and then as environmental columnist for The Sunday Times...
, IEA Media Fellow - Dr Mark Pennington, IEA Political Economy Fellow
- Professor John Spiers, IEA Health Policy Fellow
- Dr Elaine Sternberg, IEA Philosophy and Corporate Governance Fellow
- Dr Cento Veljanovski, IEA Law and Economics Fellow
Honorary Fellows
- Professor Armen AlchianArmen AlchianArmen Albert Alchian is an American economist and an emeritus professor of economics at the University of California, Los Angeles....
- Professor Michael Beenstock
- Samuel BrittanSamuel BrittanSir Samuel Brittan is a British columnist for the Financial Times and an author.At Cambridge he was taught by Peter Bauer and Milton Friedman...
- Professor James M. BuchananJames M. BuchananJames McGill Buchanan, Jr. is an American economist known for his work on public choice theory, for which he received the 1986 Nobel Memorial Prize in Economic Sciences. Buchanan's work initiated research on how politicians' self-interest and non-economic forces affect government economic policy...
- Professor Ronald CoaseRonald CoaseRonald Harry Coase is a British-born, American-based economist and the Clifton R. Musser Professor Emeritus of Economics at the University of Chicago Law School. After studying with the University of London External Programme in 1927–29, Coase entered the London School of Economics, where he took...
- Professor R M Hartwell
- Professor Terence W HutchisonTerence Wilmot HutchisonTerence Wilmot Hutchison FBA was a world famous economist. Born in Bournemouth, England, he attended Peterhouse, Cambridge in 1931 to study the classics but switched to economics. He took his bachelor of arts degree, with first class honours, in 1934...
- Professor David LaidlerDavid LaidlerDavid Ernest William Laidler has been one of the foremost scholars of monetarism. He published major economics journal articles on the topic in the late 1960s and early 1970s...
- Professor Chiaki Nishiyama
- Professor Sir Alan PeacockAlan T. PeacockSir Alan Turner Peacock DSC, FBA, FRSE is a British economist born in 1922. He has taught at the University of St Andrews, the London School of Economics , the University of Edinburgh, the University of York , and finally at the University of Buckingham, of which he was the Vice-Chancellor from...
- Professor Anna SchwartzAnna SchwartzAnna Jacobson Schwartz is an economist at the National Bureau of Economic Research in New York City, and according to Paul Krugman "one of the world's greatest monetary scholars"...
- Professor Vernon L. SmithVernon L. SmithVernon Lomax Smith is professor of economics at Chapman University's Argyros School of Business and Economics and School of Law in Orange, California, a research scholar at George Mason University Interdisciplinary Center for Economic Science, and a Fellow of the Mercatus Center, all in Arlington,...
- Professor Gordon TullockGordon TullockGordon Tullock is an economist and retired Professor of Law and Economics at the George Mason University School of Law. He is best known for his work on public choice theory, the application of economic thinking to political issues...
- Professor Sir Alan WatersAlan WaltersProfessor Sir Alan Arthur Walters 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.- Early life :...
- Professor Basil YameyBasil YameyBasil S. Yamey, CBE is a South African economist. He was born in Cape Town in South Africa, and educated at the University of Cape Town. For many years he was a Professor at the London School of Economics...