ABSTRACT
In the years that have elapsed since the war, central planning, ‘full employment’, and inflationary pressure have been the three features which have dominated economic policy in the greater part of the world. Full employment policies are the dominant factor of which the other characteristic features of contemporary economic policy are mainly the consequence. Full employment has come to mean that maximum of employment that can be brought about in the short run by monetary pressure. Full employment policies attempt the quick and easy way of giving men employment where they happen to be, while the real problem is to bring about a distribution of labour which makes continuous high employment without artificial stimulus possible. An economy paralysed by controls needs the extra stimulus of inflation to keep going at anything near full rate.
