PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - 28 
appropriate educational distribution of labour and thus re- 
move the discrepancy, or error, between supply and demand. 
These calculations will produce an educational programme 
relating to the transitional period and beyond, to replace in 
our model the rather crude educational projections with which 
we are making do at present. In its turn, this educational pro- 
gramme will produce a certain pattern of educational expend- 
iture in 1970 and thus affect our estimates of consumption de- 
mands, since these include, as I have said before, all expend- 
iture on education, both private and public, current and capital. 
e) The financial circuit. This circuit is not shown on the 
diagram because our work on it is not advanced enough. Our 
existing model, being set in an accounting framework, automat- 
ically generates enough income, and therefore saving, to finance 
Investment at home and abroad. This does not mean, how- 
ever, that the community will necessarily want to save the 
amount implied nor that its various sectors will want to hold 
the portfolios of new assets and claims that will emerge as a 
consequence of what is happening on the real side of the 
economy. For this reason, the relationships which we intend 
to study first will be concerned with saving behaviour and 
preferred portfolio patterns in different sectors of the economy. 
By such means we may hope to discover whether a given pro- 
gramme of growth is likely to lead to financing difficulties and, 
if so, what steps would be needed to overcome them. 
The only work we have published so far on financial re- 
lationships is concerned with personal saving [46]. 
f) The circuit of research and development. This circuit 
is also not shown on the diagram and, indeed, forms no part of 
our immediate programme of work. It is, however, important in 
connection with the increases in productivity which emerged 
from the first circuit. If these increases cannot be met as 
things stand, perhaps research and development could bring us 
nearer to meeting them. Although it is difficult to find a rela- 
1] Stone - pag. 60