9058009874

CHAPTRR IT

27

86230

The preat.lge of t.he •out. fundamental achoola make* for an eclect.lc v1 aw ahnut. t.he aourcea of Inflat.lon and t.he polldea to taka cara    of t.hew . The reapona 1 h1 1 1 ty t.enda to    he

attrihuted to    bot.h factora e 11. er na 1.1 ve 1 y out.Hned    by t.he    wa1n

ourrent.a of t.hought.: exceaa of expend1ture and    exceaa    of

• oney on one aide, exceaa of noil nal wagę* on t.he ot.her. I n hot.h caaea t.he att.ent.1on 1a aalnly foonaed on t.he fInanclal flowa wh Ich    cha rac ter 1 an% t.he anonnay and    ahnut.    t.he

¹ arlt.haet.lcR’ of t.he ratea of growth of noalnal wagea, labour produot. 1 v1 ty , prlcea and labour coat.a.

Tt. la In t.hla context. that we f1nd t.he propoa 11.1 ona which are wore adopt.ed by governaien t.a , and, 1 n • pa r1.1 cii 1 a r , t.he onea which underlle t.he aioat. adopt.ed atrateglea of aggreaa1ve coaipet. 11.1 on , which conatlt.ut.e the central crltlcal target. of t.he preaent. Report..

We will devot.e to t.heM a good deal of att.ent.1on In t.he next. chapt.era. However, t.he 1aaue can be auMMarlzed aa foliowa. The level of act.1v1t.y of the ayat.eai la conatralned by t.wo klnda of poaalble d 1 aequ 1 1 1 br 1 a :    inflat.lon and ext.ernal Iwbalancea.

Snch eonatra 1 nt.a can be hot.h re«nved through at.rat.eglea t.hat. could keep the prlcea of doaeat.lc out.put. lower t.han t.hoae of forelgn cowaod 11.1 ea . Keeplng t.he labour coat.a Iow and the produot. 1 vi t.y high nilowa t.o reaove auch eona t.ra 1 n t.a . Tt 1a poaathla that., In order to ralaa t.he level of prodnct.1 v1 ty, oholoea have t.o be Mada t.hat. produce leaa eiploy»«nt In the ahort. run; however , once auffldent. Increaaea In pr odnet 1 v 1 ty have be en obt.alned, t.he ahare of t.he world Market. doMlnat.ed by doMeatlc out.put. growa , and t.hla w1 1 1 produce a larger eip 1 oyien t..

Other 'applled economlca' or 'applled pollclea' poalt.lona are too cont.lngent. and d 1 f f aren 11 a ted t.o be dealt. wlth here . The only t.h1ng that. la worthwhlle t.o be Mentloned here 1a t.he fragwentatlona of concept.ual fraMe worka    underlylng

m 1 croeconoM 1 c polldea, which 1a t.he Mlrror-laage of the already not.lced f ragwen t.a 11 on of wacro and ■ 1 cro-po 1 1 d ea In the r e a 1 11. y .

Many of t.he aupported Meaaurea, auch aa tralnlng polldea, Marglnal eaploycant. aubaldlea,    tewporary    labour hlrlng and

Meaaurea alaed at. Maklng the    lahour re 1 a1.1 onah 1 pa    Morę

flex1hle, f Inanclal t.ranafera t.o t.he flraa t.o help t.he Ir reatrnctur 1 ng, have In generał a broader acope t.han t.he one eona11 t.ut.ed hy t.he Increaae 1n labour product. 1 v 1 ty and the lowerlng of labour coat.a;    however they    flt 1nt.o t.he

concept.ual a t.ruct.ur 1 ng of Ma cro-po 1 1 d ea only In ao far aa they ^łappear* t.o Increaae ooMpet 11.1 yeneaa and to lower Inflat.lonary preaaurea.

Thla 1a clearly a ahort-a1ghted poaltlon, alnce a wider knowledge of the iMpact.a of auch Meaaurea could auggeat. t.hat. auch prov1a1ona are not aa effeetlye aa they appear at. a flrat. look, wh 1 1 e a deeper    acrutlny    could    ahow    het.t.er

approachea. There la, howeyer,    a aecond    rangę of    applled