Capacity Creation in Basic-Materials Industries

Barry P. Bosworth

Barry P. Bosworth Nonresident Senior Fellow - Economic Studies

John B. Shoven and

John B. Shoven Charles R. Schwab Professor of Economics - Stanford University, and NBER

Robert J. Gordon

Robert J. Gordon Stanley G. Harris Professor of the Social Sciences - Northwestern University

THE ADEQUACY of industrial capacity has not been a central concern of
postwar stabilization policy. Aggregate-demand targets, such as potential
gross national product, have typically been defined with reference only to
labor-market conditions.