SEMAINE D'ÉTUDE SUR LE ROLE DE L’ANALYSE ECONOMETRIOUE ETC.

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will determine the necessary level of m for a given kp. Using
the relations of Section ‘His ~Telds the following ecnations

r
3.2,

3.3)

3.4)

These relations of a « fiscal policy for full employment »
show some interesting — not to say disturbing — aspects.
First, we find that the less economic progress the society is
making (i.e. the smaller kp is), the more it spends on current
consumption. Second, and this explains the high rate of consumption,
 the less economic progress the society is making,
the more people earn! This follows from relation (3.4). Third,
the less economic progress the society is making, the more
people feel that they are providing for the future in the form
of saving! This follows bv calculating v - x-. which yields

Another way of putting this last statement is to say that the
slower the real economic progress of society the higher the rate
(m — ko) of « unfounded paper claims » added to the weall!
of the private sector.
In spite of the obvious improvement over the « old » poicy
 in that capacity is being utilized, it would seem rather di.
ficult to imagine that the people of an econorv would have

Haavelmo - pag.

ir