INFLATION, GROWTH, AND ECONOMIC POLICY IN THE MEDIUM-TERM

The development of a medium-term model of the British economy has proceeded in Cambridge continuously since 1960. Its purpose is summarised by the preface to the series of papers which describe the main research results: ‘The aim of the project is to study quantitatively in as great detail as possible the present structure and future prospects of the British economy, the possibilities of stimulating its rate of growth and the problems to which this would give rise.’[1] The model was always intended to help in planning and policy making and two sets of alternative projections of the economy, for 1970[4] and for 1972[5], have been published. In the last two years with the comprehensive incorporation of the fiscal system the model has been much more oriented towards economic policy making.