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If Friedman's monetary goal was to be attained, it would be as the result of a successful fiscal policy that tamed the stop-go cycle, together with an incomes policy that held money wage growth in check.
Kaldor was always convinced that incomes policy should work with the market rather than against it, and took a pragmatic approach to policy design.
The need for incomes policy was a consistent theme in Kaldor's policy writings.
In 1958 he identified wage inflation as 'the most important internal economic problem facing the United States (and other Western countries)', and argued that incomes policy was the only way of obtaining price stability without 'economic stagnation or regression' (Kaldor, 1958b,
The examples of Sweden and the Netherlands demonstrated that broad national agreement on incomes policy was a practical possibility (ibid.).
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