Policy Applications of the Model

Abstract

The purpose of this chapter is to illustrate three major policy applications of the proposed economic model. These three applications — reversing economic decline, integrating different economies within a customs union, and outlining a relatively fast growth path for some third-world nations — are only brief outlines of some of the possible applications of the model. Nonetheless, these three uses may represent the major economic problems of our time, for the reversal of the relative economic decline of the Anglo-Saxon nations is essential to the future stability of the world economy; a convergence of the economic growth rates of Western European nations is necessary to the future success of the European Economic Community; and the rapid growth of the less developed countries is vital for the alleviation of widespread poverty.