Abstract
‘Fine Tuning’ was Walter Heller’s phrase for fiscal and monetary actions by government aimed at countering deviations in aggregate demand — forecast or actual — from some target path of output and associated inflation. The idea marked an important change in doctrine. The goal was not merely to smooth out fluctuations, but to track an output-employment/inflation path chosen from the set of attainable paths according to the preferences of the policymaker.
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Bator, F.M. (1991). Fine Tuning. In: Eatwell, J., Milgate, M., Newman, P. (eds) The World of Economics. The New Palgrave. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-21315-3_35
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DOI: https://doi.org/10.1007/978-1-349-21315-3_35
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