ABSTRACT
The present chapter is concerned with the theoretical problem of main taining full employment, once a condition of equilibrium at full em ployment has been established. Such a condition of equilibrium will first be sketched for a somewhat simplified economy. Then, attention will give given to the major changes, other than changes in goods prices, which, according to the monetary theory of employment, could lead to insufficient or excessive employment. And finally, corrective action of various sorts will be considered, some of a more and some of a less desirable character. In carrying out this analysis, no effort will be made to take account of dynamic factors or the fact that, in a dynamic economy, a condition of equilibrium may never occur-may indeed be impossible. The purpose here is to explore certain of the implications of the monetary theory, not to lay an immediate basis for policy.
