ABSTRACT
This chapter considers an alteration which corresponds to an anti-inflationary policy often recommended, namely, a diminishing of the demand for commodities at fixed maximum prices and wage-rates in such a way that the inflationary gap in the commodity-markets is completely closed. It sees that, with the inflationary gap in the commodity-markets diminished to zero so that the demand for commodities is equal to the actual production of commodities, price-control may quite well be dropped, but not control of wages. The capitalist's purchases of consumer-goods may be a function of their expected income and the demand for consumer-goods may thus fall with the decline in the income expectations caused by resignation about the possibility of obtaining sufficient labour-power. If instead of restricting the demand for commodities to make the inflationary gap in the commodity-markets zero, the demand for commodities were restricted to make planned investment and saving equal, the situation is not improved.
