9058009897

CHAPTF.R T V

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86230

4.    We know t.bat. proriuct. łon woni d be largor 1f we sucofieded In

*aking 11. posslble for t.he nnemployod t.o work, only prov1ded t.hat. t.helr produot 1 v 1 ty 1s pos1t.1ve, t.hough smal lor t.han the 'norwal ¹ p rod u ot. 1 v 1 ty 1 n t.he .sphere of markę t.able goods (see t.he 1 ast. t.wo aectłons of ohapt.er 3 above). Suoh produnt. łon mlght. Inorease t.he level of well belng of t.he populat.ion, or result.    1n a high er produnt. 1v1 ty of t.he system, or    bot.h,

1 ndependent. 1 y of the fant. t.hat. suoh pos1t.ive result.s    are

anknowl edged or not. In t.erms of market. va1uns.

5.    We know t.hat plain expans1ve Keyneslan poi Ir.łea would he,

ł n t.he    present. env1ronment. , qu1t. e 1 neffeot. ł ve . They    would

result.    1n a hlgher degree of Inflat.ion and would not.    Indune

any Inorease in    t.he level of    product.ł ve    oapaolt.y;    t.hls would

be t.he oontrary    of    what.    we    should a1m at.. The    only way to

obt.aln the wldenlng of product. 1ve napad t. y łs to oonv1noe firma t.hat t.here w1 1 1 be an inorease ¹ 1n the t.hings' t.hat. will be demanderi, t.hat t.here will be suoh an Inorease regardleśs of of whet.her t.hey will ra1.se t.helr prloes and t.hat 1t. la bound    t.o    last..    The    only- way t.o avo1d a    hlgher rat.e

of Inflat.ion 1 a    t.o    keep    t.he expan«1on    of demand    at t.he same

paoe as t.hat. of p rodu ot. 1ve oapaolty, whlle flndlng a way of d1soourag1ngbet.s upon prloes.

2 . .nriLtheJ_r_broad[mpi 1 cat-Jons

The maln polloy łmplioat. inna are the followlng ones:

(1)    La bon r poił o1es, and In part. lnu lar t.he yout.h unemp 1 oymen t. polloles whlnh have heen wldely adopt.ed by RFC . r.ountriea , are fundamenta 1 1 y uselens, sinoe nonę of t.hem 1s appropr1at.fi to deal wlt.h the set. of probleras whloh have heen - I n Itself and withln t.he present. oont.ext. - out. 11 nad. Some of t.he labo u r polloles nould result usefnl, but only withln t.he frawework of an ent. łrely dlfferent. setup.

(2)    No polloy, if undertaken by a single oount.ry wł thout ooordlnat.i on with the other oonneot.ed ones, nould obt.aln any relftvant. result.. The maln dlffloult.y, however , is t.o push ooiint.r1es to oollaborat.ion and ooordinat.lon. Reoause of t.hls, 1t. 1s bet.t.er t.o avo1d at.t.enpt.s to get. very włde agreement.s among nount.rles, and to searoh for effftot.1 ve agreement.s among a llmlt.ed number of nount.rles, at. least at t.he beginning. The Ideał target. would be to reaoh sult.able agreement.s among F.F.f, nount.rles; but. even a morę llmlt.ed ooal 1 tlon oould oonst.1t.ute a go od start. Ing point.

(3)    The most. Import.ant. target. ts t.o est.abllsh a oliraat.e of oredldllt.y about. the undertaken polloy a r r a ngemen t. s . Th 1 s , In tum, 1mp11es

1

t.hat. t.he agreed strun turę of International ooordinat.lon be oredible; In order to have t.hls,' t.he behav1onr of most nount.rles should obey to olear automat. 1 o rui es, t.hat should be est.abłished t.hroogh