ABSTRACT
Control of unemployment by means of wage flexibility can be achieved quite rapidly without the very large movements in wages required in our initial design. This makes the policy proposals seem more feasible than our earlier paper (Vines and Maciejowski, 1982) suggested. But, as the results in Chapter VIII emphasise, the really important requirement for our policies not to be defeated on the 'wages front' is that the influence of price inflation on wage inflation be minimised.
