Abstract

Among the salient economic problems confronting the society it is believed that the paramount problem is to maintain reasonable stability of the price level in a vigorously growing free economy. A stable price level will help solve this problem by strengthening incentives to save and enlarging savings available for capital formation. It indicates that avoiding inflation requires attention to what may be called the structural flexibility" of our economy as well as to the maintenance of aggregate demand at an appropriate level through time. Yet the researchers have recently become aware of vital economic problems which demand their earnest attention, the author does not refer to those short run problems of avoiding serious cyclical booms and recessions. The author refers to long-run problems of structural change and adaptation of the U.S. economy. It is manifest to thoughtful persons that both the internal and the external environmental conditions of the U.S. economy are changing rapidly.