Wednesday 7th January 1981
Size of rooms - I should have a bigger one! I leave bigger one for secretaries. Niehans seminar - bombshell; monetary policy has been too tight; but I had already said that in my Gilder interview in Nov. John Nott, however, very convincing. Middleton surprised. JN [John Nott] argues we should relax money base. I entirely agree but do not like his further suggestion of using direct interventions to bring Exch Rate down. Very risky - but better than ruining much of the export industry.