Abstract
The analysis in Chapter 6 has brought us to the root of the inflation — unemployment dilemma facing an entrepreneurial economy possessing an accommodating banking system and a government responsible for creating the demand necessary to ensure full employment. A banking system which can provide finance for managers as they expand output, is also capable of providing finance for managers to meet inflating wage and other raw material costs. How does an economy, assured of full employment and a banking system ready to finance rising production costs, prevent managers and workers from raising their prices in their own self-interest?
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Sources and References
Sidney Weintraub, ‘An Incomes Policy to Stop Inflation’, Lloyds Bank Review, 1970.
Henry Wallich and Sidney Weintraub, ‘A Tax Based Incomes Policy’, Journal of Economic Issues, 1971.
J. M. Keynes, The General Theory.
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© 1988 Greg Davidson and Paul Davidson
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Davidson, G., Davidson, P. (1988). Controlling Inflation. In: Economics for a Civilized Society. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-19244-1_7
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DOI: https://doi.org/10.1007/978-1-349-19244-1_7
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-0-333-43929-6
Online ISBN: 978-1-349-19244-1
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