ABSTRACT
The question of how the stabilization of prices can be brought about at full employment—whatever meaning is given to these terms—is a typical example of the more general question of how certain ends can be realized by using certain economic means. Thus there is good reason for discussing the general relationship between ends and means in economic policy. It must be said at once that the end-means problems which will be investigated here are not the deep or pseudo-philosophical problems that are often discussed under this heading. It is a purely technical question of the relationship between ends and means in economic models that is our concern here. The discussion will take place on a rather formal plane, but it will be illustrated to some extent by the ends of full employment and a stable value of money, and certain means for attaining these ends—monetary and fiscal policy.
