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Conclusions to Part IVChapters 14–17 offered a whirlwind tour of the macroeconomy. The realeconomy consists of the physical transformation of low-entropymatter-energy from nature into forms that enhance human welfare but inthe process inevitably reduces the flow of welfare-enhancing services fromecosystem funds. GNP is an inadequate measure of the real economy, becauseit lumps together both goods and bads. The monetary sector of theeconomy functions as a lubricant for the allocation process. Who is entitledto seigniorage is a policy variable in the monetary system affectingdistribution, as well as allocation between private and public goods. Currentseigniorage policies in most countries favor the wealthy and the privatesector. Monetary systems can also affect scale, and interest-bearing,debt-based money creation is incompatible with a steady-state economy,which will ultimately require a nonincreasing money supply. The law ofdiminishing marginal utility tells us that distribution, both within and betweengenerations, can be an important tool for increasing human welfare.Macroeconomic policy levers include government expenditure, taxes,money supply, and interest rates. These policy levers are currently used topromote continuous economic growth but could instead be used to attainthe goals of sustainable scale and just distribution—goals essentiallyignored by the market microeconomy. We next turn our attention to internationaleconomics, to see how it affects the policy levers we justdiscussed.