ABSTRACT
This chapter explores the difference between private capitalism and collective capitalism, considers the major problems created by collective capitalism, indicates some of the steps the author has already taken toward their solution, and points the direction in which a satisfactory solution seems to me likely to lie. The major problem includes: income distribution, the allocation of resources, the external balance of payments, administrative inflation, and maintaining full employment. The great revolution rejected the principle that under capitalism automatic forces would tend to maintain full employment and that any significant departure from a prosperous condition is only temporary. The chapter takes issue with the Keynsian doctrine that the only significant way money affects aggregate demand is through its affect on interest rates. It explains the set of monetary institutions and monetary policies which allow the fine adjustment necessary for maintaining the appropriate level of aggregate demand.
