TITLE

THE WORLD ECONOMY 1979

AUTHOR(S)
Shonfield, Andrew
PUB. DATE
December 1979
SOURCE
Foreign Affairs;1979 Special Issue, Vol. 58 Issue 3
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
This article presents information regarding the condition of the world economy in 1979. To that extent Germany, with its overwhelming wish to avoid any appearance of even a small increase in the rate of inflation at home, was responsible for holding back an upsurge in the dollar exchange rate that would have imposed a severe cost on those who had earlier speculated against it. As some observers argued, the occasional demonstration that speculating on the expectation of a weak dollar was not always an absolutely safe one-way bet might have had a salutary effect on the subsequent mood of international currency markets. But the German central bank's answer to such criticisms, namely that over time it fulfilled its function to moderate the violent movements, both upward and downward, in the market value of the dollar, had some force. Over the period as a whole, including the subsequent movement of exchange markets against the U.S. currency, the Germans ended up with a large net acquisition of dollars. This the confidence expressed spokesmen early in 1979 that the tide of adverse forces was already being decisively reversed turned out to be premature.
ACCESSION #
4852686

 

Related Articles

  • Money supply endogeneity under a currency board regime: the case of Bosnia and Herzegovina. Gedeon, Shirley J. // Journal of Post Keynesian Economics;Fall2009, Vol. 32 Issue 1, p97 

    A currency board is a monetary regime based on an explicit commitment to exchange domestic currency for a specified foreign currency at a fixed exchange rate. Currency boards are thought to exhibit properties of money supply endogeneity and monetary self-regulation, eliminating the need for...

  • Deflation in China. GUERINEAU, Samuel; GUILLAMONT JEANNENEY, Sylviane // China Economic Review (1043951X);Dec2005, Vol. 16 Issue 4, p336 

    Abstract: This article investigates the causes of deflation China has experienced since 1998. The analysis is based on a theoretical model which makes the distinction between tradable and non-tradable goods and on the estimation of a reduced equation of consumer price variations for the period...

  • Let It Ride. Rogoff // Foreign Policy;Mar/Apr2005, Issue 147, p74 

    The article focuses on the system of international currency exchange rates. Business magazines are filled with articles asking whether today's central bankers ought to take a more active role in stabilizing exchange rates, or perhaps contemplate a move toward a global currency. But, for all its...

  • ALAN WALTERS. Walters, Alan // National Review;6/11/1990, Vol. 42 Issue 11, p34 

    Focuses on the proposed monetary union in Europe. Right to create money in either a government or a central bank or some foreign institution; Automation of monetary mechanisms; Pros and cons of pegging the exchange rate.

  • Non-linear adjustment of import prices in the European Union.  // Bank of England Quarterly Bulletin;2008 2nd Quarter, Vol. 48 Issue 2, p185 

    The article presents an overview of a study of the process of adjustment of import prices in European Union countries towards their long-run equilibrium when they deviate from it due to changes in exchange rates or in foreign prices. Three different possibilities of non-linear adjustments are...

  • Financial openness of CIS economies. Dabrowski, Marek // BOFIT Discussion Papers;5/2/2013, Issue 7/8, p14 

    The article examines the degree of financial openness of the Commonwealth of Independent States (CIS) economies in the 2000-2010 period. To measure the degree of financial openness of CIS countries, the researchers analyzed the formal regulation of cross-border capital flows and exchange...

  • On International Monetary Reform. Hirsch, Fred // Challenge (05775132);Jul/Aug76, Vol. 19 Issue 3, p53 

    The author of this article presents his opinions on international monetary reforms. He says that international monetary reform is the longest running show in the banking part of town. Never quite completed always one step further away, the term sometimes seems a misnomer for the continuing...

  • EVAN G. GALBRAITH. Galbraith, Evan G. // National Review;6/11/1990, Vol. 42 Issue 11, p32 

    Focuses on the proposed monetary union in Europe. Implications of France's high-interest policy; Operation of central banks together in Europe; Establishment of exchange rate policy; Protection of imports of Great Britain.

  • External Adjustment: The Proper Role for the IMF. Cooper, Richard N. // Challenge (05775132);May/Jun93, Vol. 36 Issue 3, p53 

    In this article, the author assesses the performance of the International Monetary Fund (IMF). The IMF and the World Bank have played an important role in encouraging fiscal discipline and reasonable steadiness in real exchange rates. They also, of course, have provided financial resources to...

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sign out of this library

Other Topics