ABSTRACT
It is possible to make direct comparisons of the deviations of the various outputs in this way, if they are measured in appropriately normalised units. In this chapter we measure the input and output variables as follows. The exchange rate, the wage rate, Money GDP and unemployment are all measured in percentage deviations from their target trajectories. The rates of indirect tax and employees' national insurance contributions are measured in differences in percentage rates from their target trajectories. The balance of payments is measured in differences from its target trajectory, but expressed as a percentage of the Base Run value of Money GDP.
