The 1976 Budgets

indefinite future period, it is hard to see how the country can avoid this process of working out the distortions. Moderate monetary and fiscal restraint, of the variety now being applied, may be able to bring us close to the four per cent target by 1978 without causing unbearable unemployment or idle capital. If so, we may expect that the Government will progressively relax the restraints under the AntiInflation Act, while retaining the Act itself, in order to permit an orderly return to market-determined bargaining relationships in the private sector. SJudith Maxwell

Fiscal Policies and Political Economy · Psychology