Harman Patil (Editor)

Magical triangle

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The Magical triangle depicts three important macro-economic goals for the government in the neo-Keynesian teachings:

  • Price stability
  • Full employment
  • Balanced Budget
  • This triangle seems to be 'magical', as it is impossible to fulfill all three goals at the same time. Later on, a couple more goals were added: Improvement of the economic growth, enforcement of the economic structure and a more balanced distribution of the economic activity over the different regions of a country.

    References

    Magical triangle Wikipedia