Our director Ewen Stewart had the great honour of giving the Adam Smith Lecture at Pembroke College Cambridge on Tuesday 13th November and spoke on the subject of 'The Abolition of Risk. Economics on Speed.' The thesis behind the lecture was that we are living in a super-charged environment post the financial crisis that remains largely unresolved.He examined the growth of the state and micro regulation, a world of structural fiscal deficits and monetary experimentation, increasing societal expectations and heightened political tension leading to an atmosphere where policymakers/ politicians are forced to try and abolish 'the cycle'. While this micro management may well 'kick the can down the road' it does not solve the underlying problem, heightening the risk of a major economic dislocation in the longer term.
He argued we are on a monetary policy and fiscal treadmill that we cannot easily escape and the consequences are negative for productivity and distorting for asset allocation with ever greater regulation and micro management and proposed we needed a complete examination and reduction in the role of the State if we wished to preserver a free economic society. A copy of the accompanying presentation is available on request.