ABSTRACT
This chapter suggests the main steps that need be taken in developing a positive program for maintaining reasonably full employment. The first step toward a positive program is to examine the validity of the monetary theory itself. The second step toward a positive program is to lay a better statistical basis for policy. The third step in a positive program is to provide a positive control over the total monetary stock. The monetary theory places considerable emphasis on assets other than money. Many advocates of the use of federal fiscal policy as a method of maintaining full employment consider it the only important short-run method of adjustment. Fiscal policy could provide a mechanism for converting an expansion in the stock of money into increased current consumption. According to the monetary theory, the great increase in the public debt during the war should make it much more easy to maintain full employment after the war than before.
