Foreign Minister James (Meade)

genus. June 23, 1907, Mr..


Memory of the Nobel Prize in Economics, 1977
with Bertil Ulin


British economist James Edward Meade was born in Suonidzhe, Dorset, the son of Charles Hippsli Mead and Kathleen (nee Cotton-Stapleton) Mead. The main subjects in Lembruk-cheekbones and Malvern College, where he studied, respectively, from 1917 to 1921. and from 1921 to 1926, were Latin and Greek, as well as in Oriel College, Oxford. Only in 1928, when M. moved to the newly created at Oriel College School of philosophy, politics and economics, he began studying economic sciences.

His interest in this science was called 'absurd and malicious' as he called it, the level of unemployment in Britain between the wars, as well as the influence of his 'beloved, but somewhat eccentric aunt, a spinster'. She was a follower of Major Douglas, the English economist who developed the theory, argued that the disease is caused by a lack of a modern economy the purchasing power. Offer the solution to the problem consisted in an increase in purchasing power through control over prices and distribution of 'social credit' among consumers. Although the classes M. economies quickly weaken his faith in the idea of Douglas, they have not undermined his interest in the development of policies aimed at improving the economic well-being.

After receiving in 1930. Master M. He was elected a member of Hertford College, Oxford University, which gave him the opportunity to continue their studies further during the year. Received from Dennis Robertson's invitation to study at Trinity College, Cambridge University for an additional year, M. did not fail to seize the opportunity to engage in a group of economists, nicknamed 'circus'. This group included Robertson, Richard Kahn, Piero Sraffa, Joan and Austin Robinson. This group is often vsrechalas with John Maynard Keynes, and will discuss ideas that ultimately gave rise to the book of Keynes 'General Theory of Employment, Interest and Money' ( "The General Theory oy Employment, Interest, and Money", 1936). This 'intellectual feast - later recalled M. - was the most impressive year of my life'.

Back in 1931. at Hertford College, as a member of his staff and lecturer on economic issues, M. continued to liaise with the revolutionaries in the Keynesian macroeconomic theory. In 1936, Mr.. He published the book 'Introduction to economic analysis and economic policy' ( "An Introduction to Economic Analysis and Policy"), which became one of the first textbooks that contained an attempt to give a systematic exposition of the theory of Keynes. His continued interest in the problems of unemployment, coupled with an interest in international issues has allowed him to take in 1937. proposal to do the work in the Secretariat of the League of Nations in Geneva. There, as editor of 'World Economic Outlook' ( "World Economic Survey"), he continued implementation of the research program initiated by Bertil Ulin. Above this program worked for an impressive group of economists, among them Jan Tinbergen and Tjalling Koopmans.

After World War II M. returned to England in 1940. to work in the economic department of the British government cabinet. With Richard Stone, he prepared the first official estimate of national income accounts of the United Kingdom. There, in the government, M. participated in the development of postwar economic and foreign policy of Great Britain. He helped prepare the Government's White Paper 1944. on employment policy, which announced an obligation to take measures to maintain after the war, low unemployment. He has also worked with a group of Keynes on the problems of restructuring the international financial and trading system by establishing the International Monetary Fund. International Bank for Reconstruction and Development and particularly the General Agreement on Tariffs and Trade.

In 1946, a year after coming to power of the Labor Party, M. was appointed director of the Economic Department and held that post until 1947. Then he returned to academic pursuits, becoming a professor at the London School of Economics for the next ten years. During this period he wrote a work of 'theory of international economic policy' ( "The Theory of International Economic Policy"), . even the two bulky volumes of this work - 'The Balance of Payments' ( "The Balance of Payments", . 1951) and 'Trade and welfare' ( "Trade and Welfare", . 1955) - 'did not exhaust the variety of issues in international relations', . as he later said, . convinced, . that his 'original plan was too ambitious',
.

For the first time developing a theory of international trade, M. in this work to combine their theoretical interests with the desire to create effective instruments of economic policy. The main contribution to this task, . contained in his book 'Balance of payments', . a model of such a policy, . which was able to achieve two main goals: the internal balance (full employment) and external balance (balance of payments),
. Based on the principle developed by Tinbergen, the author shows that to achieve these two objectives requires the use of two instruments of economic policy. For example, internal and external balance can be achieved only through the application and fiscal (to ensure full employment), and monetary (or repulsion to attraction of international capital flows) policy.

In the book 'Trade and welfare' M. showed the impact of international trade on welfare in countries that do not have the perfect competitive domestic markets. He showed, by resorting to 'theory of second best', that if the conditions necessary to achieve the optimum, not implemented, progress towards free trade can be disruptive and can reduce welfare. Moreover, in case of high trade barriers can best be the enemy of good: trade restrictions may in this case to raise the level of economic well-being. This book also reflects the opinion of Moscow, that the economy should be developed as a science, focused on the practical application of policy.

In the work on 'trade and welfare', he relied heavily on the 'new economic theory of welfare', which rejects the method of comparison, openly in opposition gains a loss of another. However, he later came to the conclusion that this theory is too limited approach to policy, since policy must take into account the comparative differences in the situation of people. So he went back to the earlier economic tradition whereby a comparison of different people is reflected in the assessment of political leaders the importance of improving the welfare of individuals. Accordingly, and on economic policy is judged by how well it serves the overall utility, expressed as a weighted sum value of all individuals.

Since its inception, M. interested in the balance between efficiency and equity. Shortly after the Second World War he wrote had a great influence on public opinion in a book on the effectiveness of the free market system and criticism of government regulation imposed by the postwar British economy. At the same time he noticed the negative effects of the capitalist system, affecting the distribution of income. 'My heart belongs to the left, and the brain - the right' - he repeated.

Turning to 1957. from the LSE to Cambridge University, M. continued to write much, focusing on the problems of domestic economic policies and income distribution. In his book 'The efficiency, equity and ownership' ( "Efficiency, Equality, and the Ownership of Property", 1964) he gave a hypothetical review of the forces that determine the accumulation of capital. This theme he developed further in the books 'legacy of inequality' ( "The Inheritance of Inequalities", 1974) and 'fair economy' ( "The Just Economy", 1976). Coming in 1974. retirement, he continued active in the field of theoretical research and the development of economic policy. In 1975. he published a 'Guide radical intellectuals on economic policy' ( "The Intelligent Radical's Guide to Economic Policy"), in which it expressed its vision of 'the socialist system of prices'. Between 1975 and 1977. he headed a government committee, which published in 1978. report 'The structure and reform of direct taxation' ( "The Structure and Reform of Direct Taxation").

M. and Bertil Ulin shared memory of the Nobel Prize for Economics in 1977, received her 'for pioneering contributions to the theory of international trade and international capital movements'. In his speech at the presentation Assar Lindbeck of the Royal Swedish Academy of Sciences praised the results of M. analysis of the 'effects of different economic policy to international trade and international division of labor' and the establishment of 'foundation for the modern theory of employment in an open economy'. In his Nobel lecture M. raised for discussion the complex relationships between these important economic factors as employment, wages, prices and foreign currency.

In 1933. M. married Margaret Wilson, who then worked as a secretary at Oxford Branch of the League of Nations. M. known as highly vicious man who has avoided any travel and participation in seminars.

M. is an honorary member of the London School of Economics, Oriel and Hertford College, Oxford, Christ College, Cambridge University. He is an honorary member of the Belgian Royal Society of Political Economy. The American Economic Association and the American Association for the Advancement of Science.