... a mixed system in which public and private sector forces interact together. The economic system is neither public nor private, but involves a mix of both sectors. We cannot deal with public economics only; since the public sector operates in interaction with the private, both sectors enter the analysis. 1. Need for Public Sector It's important to note that the market mechanism alone cannot ... employment and control of inflation. Hence, the stabilization function enters as the third budgetary concern. Instruments of Stabilization Policy Monetary Instruments: The money supply must be con...

• Word Count: 1682
• Approx Pages: 7