ABSTRACT
We now confine our attention to a New Keynesian strategy. In this case employment is to be promoted by the fixing of wage rates at appropriate levels. This has been discussed at length in Volume I, and no purpose would be served by repeating that discussion here. This wage-fixing is to be carried out against a background of demand·management policies designed to keep the total money expenditure on goods and services produced in the UK, and so the total money income earned in their production, on a steady growth path. This path for domestically produced money incomes we will call the money income target.
