The Review of Economics and Statistics Vol. 42 No. 3 1960
Appraisal of Recent Tight-Money Policies
Abstract
fore think that if the nation really wants to take the necessary steps, the present over-all inflationary pressure can be reduced to a relatively minor problem. 4. growth. The measures proposed above will also remove a number of the present barriers to achievement of an optimum growth rate. Elimination of government actions that favor special groups without commensurately increasing the national welfare, however, as in the case of most protective tariffs and of many other operations that are in fact subsidies, is also necessary. If, on the other hand, average growth is held back by persistent deficiencies in aggregate private demand, as indicated by rising average rates of unemployment, then government spending on socially desirable programs should obviously be accelerated, on the average, until the gap is filled. Optimum growth need not mean merely more automobiles, television sets, and advertising displays. for which productivity increases, as output grows, have typically been small or zero.
- DOI
- 10.2307/1926366
- Volume
- 42
- Issue
- 3
- Pages
- 252
- Sources
- openalex crossref