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Fighting Inflation: Controlling the Money Supply vs. Buffers and Tips

In: Economics for a Civilized Society

Author

Listed:
  • Greg Davidson

    (National Aeronautics and Space Administration (NASA))

  • Paul Davidson

    (University of Tennessee)

Abstract

The analysis in Chapter 8 has brought us to the root of the inflation—unemployment dilemma facing a civilized market economy. Government accepts the responsibility for acting as a balance wheel to create and maintain the demand necessary to assure the full employment of all who want to work. In the rare periods of over full employment this may involve reducing total market demands. More commonly this balance wheel function involves either creating incentives for private-sector demand expan­sion or by direct government purchases of goods and services through contract-letting and/or the expansion of public enterprises such as the National Park Service, the Post Office, etc.

Suggested Citation

  • Greg Davidson & Paul Davidson, 1996. "Fighting Inflation: Controlling the Money Supply vs. Buffers and Tips," Palgrave Macmillan Books, in: Economics for a Civilized Society, edition 0, chapter 9, pages 152-178, Palgrave Macmillan.
  • Handle: RePEc:pal:palchp:978-0-230-37487-4_9
    DOI: 10.1057/9780230374874_9
    as

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