Abstract: This chapter discusses problems of economic policy. The most important problem with which economics has to grapple is how to ensure a continuous improvement in the standard of living without wide fluctuations in employment. This calls for full and stable employment of the country's manpower, an enlargement of its stock of productive assets, and a progressive improvement in productivity. In a managed industrial economy, the prime aim of economic policy has tended to be full employment. There are number of conflicting objectives that have somehow to be harmonized in employment policy: there is the need to reconcile full employment with a reasonable degree of stability in the value of money; this is associated with the need to avoid running into balance of payments difficulties that may interrupt the process of expansion; these objectives will be promoted by an even pressure of demand throughout the economy and thwarted by the emergence of bottlenecks in capacity in particular industries or localized unemployment in particular areas, If full advantage is to be taken of the opportunities of growth and development, the necessary level of investment must be maintained. The importance of monopolistic elements in modern industry has repeatedly been emphasized. Monopoly powers are much more restricted in an open economy than in one where competition from abroad is hampered or prevented by tariffs, quota limitations, and other protectionist measures.
Publication Year: 1982
Publication Date: 1982-01-01
Language: en
Type: book-chapter
Indexed In: ['crossref']
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