Measures taken to cool the overheated economy appear to be bearing some results. Growth of spending has moderated over the past year, reducing “demand-pull” pressures for resources and on prices. Reduction of excessive total demands and accelerating inflation of necessity always involves costs in the form of foregone production and continued price increases for an extended time. The alternative of continued accelerating inflation for prolonged periods is clearly unacceptable. An objective of current stabilization policy has been to take actions which will reduce inflation and restore stable economic growth, while minimizing the costs of the transition.