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Briefing Paper
Author(s) -
HOLLY SEAN
Publication year - 1985
Publication title -
economic outlook
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.1
H-Index - 8
eISSN - 1468-0319
pISSN - 0140-489X
DOI - 10.1111/j.1468-0319.1985.tb00102.x
Subject(s) - economics , inflation (cosmology) , unemployment , subsidy , macro , economic policy , conquest , macroeconomics , keynesian economics , market economy , history , ancient history , physics , theoretical physics , computer science , programming language
The conventional post‐war wisdom was that unemployment was a consequence of inadequate economic growth, and economic growth was to be secured by macro‐economic policy. Inflation, by contrast, was increasingly seen as a matter to be dealt with by microeconomic policy ‐ the panoply of controls and subsidies associated with the era of incomes policy … But the proper role of each is precisely the opposite of that assigned to it by the conventional post‐war wisdom. It is the conquest of inflation, and not the pursuit of growth and employment, which is or should be the objective of macro‐economic policy. And it is the creation of conditions conducive to growth and employment… which is or should be the objective of micro‐economic policy.—Nigel Lawson, Fifth Mais Lecture, 1984.