Coupling Can Be Good for You
Article Abstract:
The rise in American interest rates has been the cause of increasing capital from Europe and Japan to be invested in the United States. Foreign finance ministers and central bankers are uncertain how to deal with the situation. To act independently, ignoring what happens with American interest rates, would very likely lead to rising inflation. Tying interest rates to American rates would result in a short term output slump, deepening the recession. Britain, West Germany and Japan tightened domestic monetary policies, causing rising interest rates and lower dollar exchange-rates in 1981. The American dollar may soon weaken, but action is unpredictable until it actually happens. Independent economic policies have international effects. Coordinations of interest and exchange rates can be advantageous at the price of independence.
Publication Name: Economist
Subject: Economics
ISSN: 0013-0613
Year: 1984
User Contributions:
Comment about this article or add new information about this topic:
Tebbit's Dilemma
Article Abstract:
Britain's Industry Minister Norman Tebbit wants to cut ineffective capital investment subsidies. Regional aid is a very touchy issue. Tebbit's possible suggestions are listed.
Publication Name: Economist
Subject: Economics
ISSN: 0013-0613
Year: 1983
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: The economics of favors. Non-prisoner's dilemma. The effects of community characteristics on community social behavior
- Abstracts: Huffing and Puffing over Tory Foreign Policy. Europeanism Versus Imperialism. A Not-so-Special Relationship
- Abstracts: No Other Gods but Mrs. T. Britain, the Hostile Power. A Better Class of Fudge?
- Abstracts: The Debate that Never Was. Poleversities for London. More Girls Too