This book examines important issues on the relationship between economics and political values or ideologies, by analysing the main branches of economic theory in an historical perspective and their impact on economic policy. The book is structured as follows: Part I: Positive Economics? 1. The Positive-Normative Distinction in the History of Economic Thought Part II: Policy Objectives 2. The Objectives of Economic Policies: An Historical Review

The first part of the book is devoted to an historical survey of what has been written regarding Britain's policy problems since 1946: problems such as full employment, the sources and methods of controlling inflation and the measures to promote economic growth. At an international level, issues such as economic relations with Europe and the question of devaluation are considered. The subsequent part of the book considers how far economists' recommendations regarding policies have been derived from well-tested theories, or how far they have been based on speculation, guesswork or judgement.