Abstract
‘Fine Tuning’ was Walter Heller’s phrase for fiscal and monetary actions by government aimed at countering deviations in aggregate demand — forecast or actual — from some target path of output and associated inflation. The idea marked an important change in doctrine. The goal was not merely to smooth out fluctuations, but to track an output-employment/inflation path chosen from the set of attainable paths according to the preferences of the policymaker.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Bibliography
Bator,F.M. 1982. Fiscal and monetary policy: in search of a doctrine. In Economic Choices: Studies in Tax/ Fiscal Policy. Washington, DC: Center for National Policy.
Blinder, A.S. and Solow, R.M. 1984. Analytical foundations of fiscal policy. In Economics of Public Finance Washington: Brookings Institution.
Council of Economic Advisers. 1962. Annual Report of the Council of Economic Advisers. Economic Report of the President. Washington, DC: US Government Printing Office.
Friedman, M. 1948. A monetary and fiscal framework for economic stability. American Economic Review 38, June, 245–64.
Friedman, M. 1968. The role of monetary policy. American Economic Review 58(1), March, 1–17.
Heller, W.W. 1967. New Dimensions of Political Economy. New York: Norton.
Lerner, A.P. 1941. The economic steering wheel. University Review, Kansas City, June, 2–8.
Lucas, R. 1976. Econometric policy evaluation: a critique. Journal of Monetary Economics BTX Supplement, Carnegie-Rochester Conference Series 1, 19–46.
Lucas, R. 1977. Understanding business cycles. Journal of Monetary Economics, Supplement, Carnegie-Rochester Conference Series 5, 7–29.
Lucas, R. 1980. Methods and problems in business cycle theory. Journal of Money, Credit, and Banking 12(4), Part II, November, 696–715.
Modigliani, F. 1977. The monetarist controversy, or, should we foresake stabilization policies? American Economic Review 67(2), March, 1–19.
Okun, A.M. 1971. Rules and roles for fiscal and monetary policy. In Issues in Fiscal and Monetary Policy: The Eclectic Economist Views the Controversy, ed. James J. Diamond, Chicago: DePaul University Press. Reprinted in Economics for Policymaking, Selected Essays of Arthur M. Okun, ed. Joseph Pechman, Cambridge, Mass.: MIT Press, 1983.
Okun, A.M. 1980. Rational-expectations-with-misperceptions as a theory of the business cycle. Journal of Money, Credit, and Banking 12(4), Part II, November, 817–25.
Phelps, E.S. 1968. Money-wage dynamics and labor-market equilibrium. Journal of Political Economy 76(4), Part II, July—August, 678–711.
Samuelson, P.A. 1951. Principles and rules of modern fiscal policy: a neo-classical reformulation. In Money, Trade and Economic Growth: Essays in Honor of John Henry Williams, ed. Hilda L. Waitzman, New York: Macmillan.
Samuelson, P.A. and Solow, R.M. 1960. Analytical aspects of anti-inflation policy. American Economic Review 50, May, 177–94.
Sargent, T.J. and Wallace, N. 1975. ‘Rational’ expectations, the optimal monetary instrument, and the optimal money supply rule. Journal of Political Economy 83(2), April, 241–54.
Sims, C. 1980. Macroeconomics and reality. Econometrica 48(1), January, 1–48.
Solow, R.M. 1976. Down the Phillips curve with gun and camera. In Inflation, Trade and Taxes, ed. David A. Belsey et al., Columbus: Ohio State University Press.
Solow, R.M. 1979. Alternative approaches to macroeconomic theory: a partial view. Canadian Journal of Economics 12(3), August, 339–54.
Solow, R.M. 1980. What to do (macroeconomically) when OPEC comes? In Rational Expectations and Economic Policy, ed. Stanley Fischer, Chicago: University of Chicago Press.
Tobin, J. 1977. How dead is Keynes? Economic Inquiry 15(4), October, 459–68.
Tobin, J. 1980. Are new classical models plausible enough to guide policy? Journal of Money, Credit, and Banking 12(4), Part II, November, 788–99.
Tobin, J. 1980. Stabilization policy ten years after. Brookings Papers on Economic Activity No. 1, (10th Anniversary Issue), 19–71.
Tobin, J. 1982. Steering the economy then and now. In Economics in the Public Service, ed. Joseph A. Pechman, New York: W.W. Norton & Co.
Tobin, J. 1985. Theoretical issues in macroeconomics. In Issues in Contemporary Macroeconomics and Distribution, ed. George Feiwel, New York: State University of New York.
Editor information
Copyright information
© 1991 Palgrave Macmillan, a division of Macmillan Publishers Limited
About this chapter
Cite this chapter
Bator, F.M. (1991). Fine Tuning. In: Eatwell, J., Milgate, M., Newman, P. (eds) The World of Economics. The New Palgrave. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-21315-3_35
Download citation
DOI: https://doi.org/10.1007/978-1-349-21315-3_35
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-0-333-55177-6
Online ISBN: 978-1-349-21315-3
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)