Lawson set out his beliefs in his Mais lecture of 1984. In a speech that turned the postwar economic consensus on its head, Margaret Thatcher’s second chancellor said that traditionally macroeconomic policy (the big picture stuff involving interest rates and tax) had been designed to deliver growth and full employment, while micro-economic policy (the nitty-gritty stuff such as regulation and price controls) had been used to keep inflation in check.
He argued the reverse should be the case: the job of macroeconomic policy was to keep inflation in check while micro-economic policy should be used to boost growth and employment.
Sort out the basic rules about markets and incentives and just make sure the big picture doesn’t go too far off the rails. Job done.