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(1983). The Politics and Philosophy of Economics. Journal of Economic Issues: Vol. 17, No. 3, pp. 850-853.

The present world depression can be explained in terms of the overinvestment theories. and the theory of Keynes. A new element reinforcing the upswing and probably protracting the downswing was, however, added to the economic structure, the political entrepreneur, subject to similar feelings of optimism and pessimism as the entrepreneur operating in real markets. The world economy is in for chronic depression unless international agreement to a certain degree on policies of demand management and lowering interest rates is restored.

Welty in his article on Giffen's Paradox1 expresses De Alessi's Professor condition on the form of individual utility functions ("the absolute value of the deduced income effect is less than the absolute value of the deduced substitution effect in the case of inferior goods"2) as: A = {Sx/SM (i) I take it that Welty's rendering of the income effect is a slip. A is in any case not consistent with Slutsky's equation. Traditional consumer's demand theory states : TT /*x *x *x ' o / 8x '

A restrictive monetary policy in the Netherlands is virtually a policy to adapt the pace of domestic inflation to the pace of inflation abroad. This aim is pursued by limiting the growth of transactions balances in case of a balance of payments deficit. Although in such circumstances the government uses to take recourse to inflationary financing, credit rationing and the rise of interest rates cause investment expenditures to slow down.

Opening Address.- Opening Address.- I National Monetary Policies.- 1. What role for monetary policy today?.- 2. US monetary policy in recent years: an overview..- 3. Monetary control: the British experience..- 4. Monetary control: the German experience..- 5. Monetary control: the Dutch experience..- II International Monetary Coordination.- 6. International monetary policy to promote economic recovery..- 7. European monetary cooperation and financial stability..- 8. The optimal exchange rate system and its significance for economic recovery..- 9. Policies and responsibilities of the International Monetary Fund: back to basics.- III Monetary Conditions for Economic Recovery.- 10. Lessons of the monetarist experiment..- 11. The significance of recent experience with monetary policy in shaping future economic policy..- 12. Monetary conditions for economic recovery: the Dutch perspective..- 13. Monetary conditions for economic recovery: the international perspective..