ABSTRACT
THEREAREfewareaswhererightactiondependsasmuchonright theoryasitdoesineconomics.Yetinfewareasisacceptedtheoryas inadequatetothedemandsofpracticeandpolicyortowhatwe actuallyknow.
The"neweconomics"isbeingadvertisedwithgreatfanfarein everydevelopedcountry.Americans,Englishmen,Germans,Frenchmen,andJapanesearebeingtoldthattheeconomistshavefinally learnedhowtomanagetheeconomy.Theycan,wearebeingassured, preventoratleastcuredepressionsandcanguaranteecontinuous growthandprosperity.Asproofofthisassertiontheeconomistspoint totherecordofthetwentyyearssincetheendofWorldWarI!- indeedaperiodoffullemployment,economicgrowth,andprosperity.
