market anti inflation plan MAP
was one of the immediate responses
to the chronic emergence of wage price spirals from the late 60's thru the full 70's
the earlier respones in effect administrative mechanisms for price control
income policies failed in peace time or more generally over the long haul
there ws chatter about a pigou like inflation tax
but MAP joined a short list of proposed "intentionally "designed market mechanisms
cap and trade mechanisms
by the end of the 70's traditional credit constraints were applied
ending the spirals everywhere and as anticipated ended them
with large contractions of output and jobs
since then credit policy has in essence crimped off expansions as they reached the taboo line where
wage rate increases begin to exceed horly value added increases
ie crunch out the nominal expansion on the demand side by reducing its credit supply
ie a contrived output cycle with all its gaps
all its episodic
implied waste of existing productive capacity
the long term dismal integeral of
lost output
lost welfare
lost happiness
