Economic policy beyond the headlines /

Two seasoned and eminent practitioners in the field provide a second edition of their 1977 book, now supplemented by a new final chapter, "A Changed World." Aimed at those making US economic policy or affected by its consequences, this lucid book deals with the specifics of the national budget, tax policy, wage and price controls, income security, international economic policy, energy policy, and government reorganization. Nearly all content remains freshly applicable to current problems in these areas. Both the older and the new sections emphasize the need to resist short-run, politically inspired intervention by government to assure more equitable income and wealth distribution, which reduces long-run efficiency (productivity) goals. The new 15-page section summarizes in brilliant fashion the problems of emerging aging populations in the industrially advanced nations--which contrast with the requirements of sharply rising younger populations in developing countries--and the need to increase productivity by reducing regulatory drag, litigation burdens, and tax disincentives on investment and saving. With respect to the world economy, the authors argue in the new chapter for maintaining flexible exchange rates while decrying the present roles of the International Monetary Fund and the World Bank as doing more harm than good. A valuable addition to public, academic, and professional library collections. H. I. Liebling; Lafayette College