ABSTRACT
In a free, open, democratic society it is desirable that the raison d'etre of any policies adopted by the central authorities should be readily understood. This consideration also tells against the Cross-Linked solution. As can be seen from the cases marked with a query (?) in section 2 of Table ILl, the Cross-Linked rules will not permit a clear-cut connection between each instrument of control and each objective. Thus (see Columns Band C of section 2 of the table) wage restraint may be called for when there is a scarcity of labour or when there is unemployment, and it may be called for when there is a general inflation of money prices and incomes or when there is a general deflation of money incomes and prices. Thus, even if there were no more administrative-institutional difficulty in running a centralised wage-fixing policy than there is in running a centralised demand-management policy, there would remain a case against CrossLinked Keynesianism.
