Another idea was suggested in the discussion paper issued by the McLeod Committee recently, namely establishing a maximum amount of income tax to be paid by any individual during the course  11  "The productivity experience of the United States: past, present, and future", a speech at the US Embassy in The Hague, 14 June 2001. 12  A new economy?
These models are, of course, only approximations to complex macroeconomic reality; and also there is no universal model for economic analysis and forecasting which can answer all potential policy questions. Therefore, central banks need multiple models for policy advice.