| Problem | Components |
|---|---|
| Policy issue area: | Economics |
| Policy issue: | Monetary system |
| Description: | Inability to manage the monetary system without unfavorable cyclical fluctuations of recessions and recoveries to control inflation. |
| Symptoms: | High interest rates; lack of wage and price stability. |
| Causes: | Lack of coordinated government/business policies to fight inflation; lack of an energy policy; lack of control over Congressional policies pertaining to housing, food production, health care and entitlements. |
| Cost of problem: | - |
| Solution | Components |
| Resources: | Universities and research institutes; Federal government (Congress and regulatory agencies); financial institutions. |
| Goal: | Reduce the rate of inflation as far as possible without jeopardizing other economic goals. |
| Program area: | Financial resources development |
| Program-remedy: | 1. "Anti-inflation Strategy," developed by the Economic Cooperation Council
and the Congress (productivity bonuses, tax mechanism for limiting price increases,
energy policy); reducing indexation of entitlement programs 2. Keeping Federal budget deficits at 2.5 to 3% of GNP. |
| Program-prevent: | 1. Congressional monitoring and oversight of possible inflationary impact of government
spending 2. National policy of balanced economic development and matching monetary policies 3. Reduce future inflationary pressures: a. Expand and upgrade the housing supply b. A program of health cost containment c. Appropriate regulation of price fixing attempts by concentrated industries. |
| Cost of program: | - |
| Beneficiaries: | Participants of the economy; retirees and others on fixed incomes. |