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May 1969

Restraining the Growth of Total Spending


The primary objective of recent monetary and fiscal actions is to slow the rapid rate of growth of total spending and thereby ease excessive pressure on resource utilization and prices. Total spending continues to outpace the growth of the economy’s productive potential. Real product growth has moderated somewhat, but prices have shown no signs of decelerating. Stabilization actions since mid-1968 have had little restraining effect so far on total spending and prices.