According to a recent report (December 1975) unemployment in western industrialized countries exceeded seventeen million. Major conferences intended to deal with the problem, such as President Ford's White House conference of 1974, or the Ranbouillet conference of a few months ago, did not come up with any solutions worth mentioning.

And yet, as we will try to show in this paper, there are solutions which could not only remedy the situation in the short run but also could keep the western economies in high gear indefinitely without inflation. More specifically we want to present here a simple and workable policy system which would allow the western market economies to move rapidly out of a depression while keeping inflation at a desirable level, even zero level if necessary, and guaranteeing efficient flow and allocation of productive resources.