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Medium-term Financial Strategy (E6, H5)<br />The UK policy for public borrowing and monetary growth first announced in May 1979 for the period 1979-E4. Originally, it was argued that announcing the government's strategy gave everyone in the economy a firm basis for expectations. However, increasingly in the 1970s, the strategy became a looser statement of intent. It continued to be published annually in the UK budget report as a set of targets for public borrowing and monetary growth<br /><em>See also:</em> Red Book
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social welfare function (HO)<br />The total well-being of a society as a function of its resource allocation. Originally this was regarded as the sum of individual utilities but ARROW showed the impossibility of this when individuals have divergent opinions. The four conditions of collective rationality - the PARETO principle, non-dictatorship and independence of any alternative in an environment other than where the social choice is made cannot simultaneously be satisfied.<br /><em>See also:</em> Arrow; Bergson; impossibility theorem
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