ABSTRACT
Eonomics has to become political economy again with its normative aspects concretely specified and the strategies spelled out. The price system could be made, as Lange suggested, more comprehensive in a planned economy than under capitalism and utilised as a tool of planning for efficient resource allocation, while divorcing it from direct distributional implications. Probably the most significant from the social point of view would be the problem of fair distribution both within a single economy and across the rich and poor nations in the world. Reorientation of economics towards normative inquiry leads naturally to the re-examination of the welfare content of aggregative magnitudes such as G.N.P. The welfare intensity of the time, rather than the length of time as such, should be the concern of welfare economics. G.N.P. is a measure of the aggregative economic activities of a country incorporating goods and services currently produced.
