Date of Award
Master of Arts
Fluctuations in the general output of the economy, have for many years absorbed the interests of the world's best economists. Many theories and e been advanced to explain the causes of and remedies for fluctuations in the economy. All of them have some merit yet most suffer from oversimplified explanations of the operation of industrial economies. She elements of this thesis are concerned with a discussion of forces that may produce or accentuate changes in the level of economic activity. Among other things, this thesis will show why simple explanations, though they may focus attention on factors that in some circumstances may be of outstanding importance, are likely to mislead and provide a poor basis for planning stabilization programs.
Statement of the problem The purposes of this study are (1) to explore the meaning of the concept of economic instability, (2) to show why instability constitutes a problem, (3) to analyze the factors which contribute to instability, and (4) to examine the devices which may be employed to stabilize the economy.
Importance of the study - In these days of serious worldwide maladjustments the problem of economic instability is very important* It may be taken for granted that modern societies are determined to strive, through group and governmental action, with all the power at their disposal to achieve a greater measure of security and stability.
The major economic disturbances that appear in alternating periods of prosperity and depression tend to have an adverse effect on the American economy Although many theories have been advanced there is still the problem of instability, Therefore, any investigation conducted for the purpose of arriving at a thoroughly satisfactory explanation of business cycles and at the same time to explore effective means of controlling the cyclical movement of business to eliminate its evils deserve some merit.
There is a growing measure of agreement among economists and politicians about the most important means of prevention and cures for economic instability. It is important that we shall not be so eager to stabilize industry that we rush unthinkingly into all manner of measures of control without careful examination of the probable consequences. There are many proposals for stability which far from achieving the end sought only sake for greater instability. Even those measures which are of genuine stabilizing value might necessitate considerable sacrifices in other directions. Nevertheless, the measure of stability achieved might well be worth the cost; in any event, we should at least face squarely what the cost would be Moreover it is important to ascertain what stabilization measures offer a minimum of offsetting disadvantages.
A. S. Arnold
F. A. Haughton
Prairie View Agricultural And Mechanical College
Rights© 2021 Prairie View A & M University
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Date of Digitization
John B Coleman Library
City of Publication
Love, P. R. (1956). The Problem Of Economic Instability. Retrieved from https://digitalcommons.pvamu.edu/pvamu-theses/1338