In January 1958 he resigned, along with the Chancellor of the Exchequer Peter Thorneycroft and his Treasury colleague Nigel Birch, in protest at government plans for increased expenditure; he was a staunch advocate of disinflation, or, in modern terms, a monetarist, and a believer in market forces. Powell was also a member of the Mont Pelerin Society. The by-product of this expenditure was the printing of extra money to pay for it all, which Powell believed to be the cause of inflation, and in effect a form of taxation, as the holders of money find their money is worth less. Inflation rose to 2.5 per cent, a high figure for the era, especially in peacetime.