ABSTRACT
In the preceding sections of this chapter we have discussed the problems of financial control on the assumption that each one of the financial policy weapons (tax rate, interest rate and foreign-exchange rate) must be used exclusively to attempt to hit one and only one of the three targets (money income, balance of payments and investment ratio). But the questions arise whether or not this is a desirable principle and whether or not one could not achieve better results by adopting the more sophisticated control-engineering technique of cross-linking the three weapons and targets in such a way that the effect of each weapon on all three targets is taken into account in devising the rules for the use of each weapon.
