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- W1567407877 abstract "This paper examines possible usefulness of tax-based incomes policy as a component of antiinflation policy. It is concluded that the tax-based incomes policy (TIPserves no useful purpose in a battle against inflation even as a supplement to the monetary and fiscal policies. Since the main purpose of TIP is to ease the pain of downward adjustments associated with monetary and fiscal tightening by reducing inflationary expectations and the TIP's ability to reduce inflationary expectations depends upon the extent to which the wage settlements are held down below the prevailing inflation rate, the cost of tax credit required to ensure public participation in a reasonably effective TIP would be staggering. On the other hand, a TIP designed to limit its costs to a manageable level is likely to be so ineffective as to be worthless. Hence, the monetary and fiscal restraints considered so essential in any responsible anti-inflation program would be made far more difficult by the enlarged size of federal budget deficit that would result from the implementation of the TIP. The paper points out that the monetary gradualism that has been practiced in Canada for the last five years has failed to reduce the inflation rate. There have been offsetting effects of continuously rising income velocity of narrowly defined money due to financial and other innovations. The only responsible course of action left to us is a more vigorous pursuit of monetary and fiscal restraints, far more vigorous than has been attempted so far." @default.
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- W1567407877 date "1982-01-01" @default.
- W1567407877 modified "2023-09-25" @default.
- W1567407877 title "Is Tax-Based Incomes Policy an Answer?" @default.
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- W1567407877 doi "https://doi.org/10.2307/3549812" @default.
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