Richard Layard has become (once again) something of a household name after the publication of the Manifesto for Economic Sense, which he wrote with Paul Krugman.

Baron Layard (he is a Labour peer) rose to prominence after having lobbied the Blair government to include happiness economics in its policies. The results have been mixed. But that is to be expected. The real world has a nasty habit of derailing the best-laid plans.

On the substance though, Layard is right.