AGGREGATE WELFARE DISTORTIONS AND FOUNDATIONS OF ECONOMIC POLICY
Journal: Advanced Management Science (AMS)
Author: Indrajit Mallick
This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited
The basic objectives of any aggregate welfare program are threefold: efficiency, equity and stability. In this paper, I discuss how constraints are imposed in a natural way over these conditions such that aggregate welfare distortions arise. There are three mitigating forces, namely: fiscal policy, monetary policy and regulatory policy. These are characterized from context to context.