Stopping the acceleration of price increases is currently the most important objective of national economic policy. The other major objective, “full employment” defined as an unemployment rate below 4 per cent, has been achieved since late 1965. The method that has been chosen to achieve stable prices is to curtail growth in total spending (GNP). Historically, a slowing of total spending has been accompanied by a slowing in the growth of real pmduct, followed by a slowing in the rate of increase in prices and by subsequent recovery in the growth rate of real product. Consequently, the question arises as to what is implied for the course of real product under the current anti-inflation policy.