INFLATION, UNEMPLOYMENT AND INCOMES POLICY.

Inflation, Unemployment and Incomes Policy. The paper reviews the Report and, tangentially, the published research studies of the Canadian Prices and Incomes Commission. Questions are raised about parts of the Report's analysis concerned with the tradeoff between inflation and unemployment, with the insulating power of a flexible exchange rate, with welfare implications of unemployment and inflation, and with the impact of incomes policy on expectations and on economic stability. The Report's recommendation of a "temporary" incomes policy seems based upon the simple assertion that demand management alone will not suffice to control inflation and that other subsidiary policies will not help whereas incomes policy will. [ABSTRACT FROM AUTHOR]