PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - =
illustration of these dangers. The objection to these measures
is not that they are unduly authoritarian or unduly laissez faire,
but simply that they are inappropriate to a system. They do
indeed enable the country to muddle through, but at a con-
siderable cost in bad business planning at home and loss of
prestige abroad.
Fourth, if we want to do away with sporadic interference,
we must examine the robustness of the system in reacting to
unforeseen events and try to build stability into it wherever
we can. An example of such an administrative arrangement
is MEADE’s proposal [25] to vary social security contributions
automatically with the level of unemployment so as to offset
short-term fluctuations in purchasing power. These devices,
as PHILLIPS has emphasised recently [28] [29] [30], must
be very knowledgeably designed, since a good control mechan-
ism should keep a variable at a chosen level and not allow
it to fluctuate.
These problems are encountered in any system and there-
fore in any economy, whatever its political complexion.
A wider recognition of this fact may be expected to bring the
operating characteristics of eastern and western economies
much closer together over the next generation.
I] Stone - pag. 26