The Economy: A Complex Formula For Prices

By specifying weeks ago a goal of getting the inflation rate down to 2% to 3% by the end of next year, President Nixon in effect fixed the Price Commission's post-freeze guideline in advance. For the record, commission members last week announced the target for price increases during the next year at an average of 2½%, or midway between the President's figures. Far more important, they drafted an ingenious plan that ties most Phase II price levels to a company's current health as measured by its productivity and profits. If the U.S. economy expands...

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