Wynne Godley pp 203-214 | Cite as

The Research Council Showdown

  • Alan Shipman


A further disaster strikes when the Social Science Research Council, for ten years the main source of funding for Godley and his group, withdraws financial support, rejecting his appeals that their work is making progress and about to yield substantial advances. The Group dissolves as leading members, including Cripps, seek new opportunities elsewhere, and Godley has to reorganise the DAE around other projects. While the SSRC says its decision reflects changes in macro modelling direction which Cambridge has missed, and the new scope for funding forecasting services commercially, Godley suspects he has been punished for the series of accurate but critical forecasts of Conservative policy outcomes and ambushed by econometricians who do not acknowledge that their models lack sequential reality and stock-flow consistency.


  1. Ball, R. J., Burns, T., & Laury, J. (1977). The role of exchange rate changes in balance of payments adjustment—The United Kingdom case. Economic Journal, 87, 1–29.CrossRefGoogle Scholar
  2. Cripps, F., & Godley, W. (1976). A formal analysis of the Cambridge Economic Policy Group model. Economica, 43(172), 335–348.Google Scholar
  3. DAE. (1985). Annual Report. Cambridge: Department of Applied Economics.Google Scholar
  4. Davidson, J., Hendry, D., Srba, F., & Yeo, S. (1978). Econometric modelling of the aggregate time-series relationship between consumers’ expenditure and income in the United Kingdom. Economic Journal, 88, 661–692.Google Scholar
  5. Financial Times. (1995, January 19). Cambridge swaps Godley for Henry, p. 10.Google Scholar
  6. Godley, W. (2006, May 24). Personal email to Francis Cripps.Google Scholar
  7. Jonson, P. (1975). An Investigation of the UK Balance of Payments with Particular Emphasis on the Role of Monetary Factors and Disequilibrium Dynamics, 1882–1970, Ph.D. dissertation, London University.Google Scholar
  8. Jonson, P. (1976). Money and economic activity in the open economy: The United Kingdom, 1880–1970. Journal of Political Economy, 84(5), 979–1012.Google Scholar
  9. McCallum, J., & Vines, D. (1981). Cambridge and Chicago on the balance of payments. Economic Journal, 91, 439–453.CrossRefGoogle Scholar
  10. Newbery, D. M. (1998). Foreword. In I. Begg & S. G. B. Henry (Eds.), Applied Economics and Public Policy (Occasional Paper 63). Department of Applied Economics (pp. xix–xxii). Cambridge: Cambridge University Press.Google Scholar

Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Alan Shipman
    • 1
  1. 1.Department of EconomicsThe Open UniversityMilton KeynesUK

Personalised recommendations