John Cochrane, fellow of the Hoover Institution and author of “The Fiscal Theory of the Price Level”, joins us to discuss the West’s economic stagnation and what it would take to restore robust growth. From America’s slowdown to Britain and Europe’s near-zero growth since 2010, Cochrane diagnoses the fundamental supply-side challenges holding back prosperity and explains why the UK’s GDP per capita of £52,000 lags so far behind America’s £80,000 and Singapore’s £90,000.

The conversation explores what Cochrane calls the “Marie Kondo approach” to economic policy, where growth requires systematic institutional reform rather than stimulus spending. He analyses everything from California’s failing £100 billion high-speed rail project to Britain’s planning system, arguing that cost disease and regulatory sclerosis have made it impossibly expensive to build anything. Cochrane also examines why the 2021 inflation proved secular stagnation theory wrong and what “frontier growth” versus “catch-up growth” means for different economies.

In the final section, Cochrane turns to fiscal crises and financial reform, warning that sovereign default is now a realistic possibility for major economies including the United States. He makes the case for narrow banking to prevent future financial crises, explains why there is no such thing as “maturity transformation”, and offers a surprisingly optimistic view that political change can happen faster than anyone expects, pointing to Trump’s election and Argentina’s libertarian president as examples of rapid shifts in the politically possible.

The Institute of Economic Affairs is a registered educational charity. It does not endorse or give support for any political party in the UK or elsewhere. Our 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.The views represented here are those of the speakers alone, not those of the Institute, its Managing Trustees, Academic Advisory Council members or senior staff.

In this Institute of Economic Affairs podcast, IEA Director of Communications Callum Price is joined by Editorial Director Kristian Niemietz and former Brexit Minister Lord Frost to discuss Andy Burnham’s ‘Manchesterism’ speech, industrial strategy and Britain’s misplaced sense of affluence. The conversation examines whether Burnham’s vision for regional economic policy represents genuine innovation or rebranded central planning, and why Britain’s political class consistently overestimates the country’s wealth.

Kristian Niemietz critiques Burnham’s rhetoric as ‘straight out of the Mariana Mazzucato playbook’, noting that whilst some proposals like releasing greenbelt land are sensible, the speech presents a false dichotomy where free market advocates supposedly ‘lean back and do nothing’. Lord Frost questions the underlying logic of designating growth clusters and directing where businesses should locate, arguing this approach lacks the ability to sustain prosperity over the medium term. The discussion highlights how Burnham attempts to rebrand the original ‘Manchester School’ tradition of free trade and laissez-faire economics into something closer to ‘city bossism’ and public sector-led activity.

The conversation shifts to examining why Britain behaves like a wealthy country when GDP per capita figures tell a different story. Niemietz argues Britain is around 7% poorer than the Western European average yet makes policy decisions as if it were Luxembourg. Lord Frost reflects on how Britain’s decline isn’t immediately visible because the capital stock deteriorates slowly, leaving people surrounded by ‘the wealth of the past’ whilst the economy falls behind North America and East Asia. The panel explores how this disconnect fuels both NIMBYism amongst affluent groups and left-wing populism from figures like Zack Goldsmith, who promise redistribution without growth.

The Institute of Economic Affairs is a registered educational charity. It does not endorse or give support for any political party in the UK or elsewhere. Our 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.

The views represented here are those of the speakers alone, not those of the Institute, its Managing Trustees, Academic Advisory Council members or senior staff.

In this Institute of Economic Affairs podcast, IEA Head of Media Reem Ibrahim interviews Elena Panisset, an institutional economist, former World Bank advisor, and founder of Thought for Action. The conversation explores why Latin American economies struggle despite having intelligent leaders and educated populations, examining the critical role of property rights, trust, and institutional reform in economic development. Elena draws on her extensive experience working with Peru, Brazil, Venezuela, and Panama to explain how bureaucratic complexity drives people into the informal economy.

Elena explains how excessive regulation and bureaucratic bottlenecks create impossible barriers for ordinary citizens trying to participate in the formal economy. From taking a year to buy a second-hand car to over two years to get a divorce, she illustrates how government complexity forces 70% of populations into informal markets where they cannot prove ownership, access credit, or reach their entrepreneurial potential. The discussion examines why capable individuals thrive abroad but struggle in their home countries, identifying the absence of secure property rights and continuous trust as the fundamental problem holding back development.

The interview concludes with Elena’s vision for formalising informal economies through simplified regulations and clear property rights frameworks. She argues that without the ability to prove ownership and existence, free markets cannot function properly and entrepreneurship remains stifled. Elena emphasises that reducing bureaucracy and establishing transparent property rights systems are essential for countries to unlock their economic potential and allow citizens the freedom to flourish.

The Institute of Economic Affairs is a registered educational charity. It does not endorse or give support for any political party in the UK or elsewhere. Our 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.

The views represented here are those of the speakers alone, not those of the Institute, its Managing Trustees, Academic Advisory Council members or senior staff.