To stick to the present situation would be something like a man who was observed in Times Square looking earnestly along the pavement. He was asked what he was looking for. He said "I lost my watch."

The supply-side effect of a restrictive monetary policy, moreover, is likely to be perverse. High interest rates enter into costs and thus exert inflationary pressure, as well as inhibiting the expansion of capacity or the introduction of cost -reducing capital improvements.

Increasingly prices are set by sellers to raise their prices without a loss of sales sufficient to wipe out the gain.

Deficits do not in themselves produce inflation, nor does a balanced budget assure a stable price level.

The nominal budget is a poor indicator of the impact of government outlays and revenues.

Balancing a nominal budget will solve nothing, and attempting to achieve such a spurious balance will produce much mischief.

To stick to the present situation would be something like a man who was observed in Times Square looking earnestly along the pavement. He was asked what he was looking for. He said "I lost my watch."