By Grahame Walshe

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14 Their main and persistent criticism of Government reports on plans has been the absence of an account of how spending 31 N Vl I I I I I I I I I ( II I '\ " I )( /-' " 35 ; I ; I : : : 1 : 1 I J{ I I ---I I ---------_ \ I 28 Central government funds eg. J I IT1 0 L_J I I :. f.. J / ~,--------1 ,------ Payment to h BBC te Lending including repayments of market ···l · ·1.... · .... · .. · · · .. "·::::•· 1 and overseas l""l'"''l................... ," I 1 I ( 1 /,...... . J I \ : I : (1:\ : : : .....

34 Summary The AS, PEWP and FSBR constitute a rolling sequence of documents relating to PES data. 4 follows the data for the plan year 1985/86 through these documents, starting with the PEWP for January 1984. As can be seen the data does not lack change even though the entries for two of the documents (AS 1985 and PEWP 1985) are little more than confirmation of the planned spend in the FSBR. 1 for budget measures in respect of employment and training schemes. (2) Latest estimated outturn. Sources: PEWP 1984, Cmnd.

Hence the emphasis in Keynesian orthodoxy on aggregate demand management to achieve equilibrium in goods markets - obtaining price stability, and labour markets - to eliminate unemployment. 1 Given the low rates of price inflation and unemployment experienced in Britain in the 1950s and 1960s 2 it was not surprising that Keynesian orthodoxy held sway. Again, with a slight rearrangement of the aggregate supply and aggregate demand equation (subtracting imports from both sides): Y= C+I+ G +[X -M] it was possible to focus on domestic demand and a net external balance expression; thus, the essentials of the system were clear and simple to grasp.

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