ABSTRACT
As argued in chapter 10, the key to ending mass unemployment throughout the developed capitalist economies is to eliminate the inflationary bias of the pluralistic bloc of economies. Only when FE has been made consistent with acceptable rates of inflation in these economies can it be expected that widespread stimulative AD policies will be reintroduced. Most programs proposed for eliminating this bias can be designated as one of the following: (a) policies that aim to change behavior through fear of unemployment; (b) policies designed to change behavior by reducing monopoly power; (c) policies designed to change behavior by working out a social bargain. While all three policies aim to eliminate the inflationary bias, the first two strive to do so by reducing the power oflabor.
