Recent failures of monetary and fiscal policy reflect deficiencies in prevailing theories of demand management. Taking available data into account, this book discusses the merits and shortcomings of Keynesian and monetarist approaches and develops the lines along which our theories need to be reconstructed.

Less extreme cases, however, are even more worrisome, primarily because the distortions in the solutions are less easy to identify. As shown above, (Nim)1 and (N1m) 2 without distortions differ in this illustration by 20 per cent of their mean value. WYhile it is easy to flag this difference for a steady series like labor force, there are many series, e.g., inventory investment, for which a 20 per cent jump is nothing to cause surprise. Further, if the relevant

Robert R. Glauber, Lawrence S. Ritter, Session Topic: Empirical Research on Capital Markets: Discussion, The Journal of Finance, Vol. 30, No. 2, Papers and Proceedings of the Thirty-Third Annual Meeting of the American Finance Association, San Francisco, California, December 28-30, 1974 (May, 1975), pp. 674-676