Page 1 |
Previous | 1 of 6 | Next |
|
This page
All
Subset
|
International monetary matters that affect our lives are explained by Mr. Edward B. McEnerney, H&S editorial consultant and an analyst of international economic affairs. It seems that most Americans have been taking the international monetary system for granted. We've assumed that it will keep on working well—and that in any case it can't have much impact on our dollar. But events of the past few months, stemming chiefly from Britain's devaluation of the pound, suggest that we had better take a second look at these assumptions. We realize now that monetary developments in faraway places could ultimately strike at our entire economy. What happened last November made this clear. When Britain devalued the pound sterling to solve her monetary crisis, she also raised her interest rates to help suppress her rampant inflation. Our interest rates had to follow suit, primarily to keep American capital from rushing to London. Result? Tougher borrowing in the U.S., with all the attendant impact on our domestic economy. And then came President Johnson's dramatic New Year's Day report that our 1967 balance of payments deficit would exceed expectations and would require new controls over foreign investment, lending, and travel. All of these developments served to focus attention on the entire worldwide monetary system itself. In particular, they threw the spotlight on the international role of the dollar, now the world's chief reserve currency, and on the global effects of our balance of payments deficits, dollar outflow, and gold drain. Americans—businessmen and housewives, alike — suddenly realized they had been ignoring these questions too long. Many a conscientious citizen had to admit how little he knew about monetary matters—the role of gold, the function of reserve currencies, and so on—but at least he now could see their vital importance. Fortunately, concern about the world's monetary apparatus has been shared for some time by statesmen and monetary experts. This year will see the 22
Object Description
Title | Great money controversy |
Author |
McEnerney, Edward B. |
Subject |
International economic relations |
Citation |
H&S Reports, Vol. 05, (1968 winter), p. 22-27 |
Date-Issued | 1968 |
Source | Originally published by: Haskins & Sells |
Rights | Copyright and permission to republish held by: Deloitte |
Type | Text |
Format | PDF page image with corrected OCR scanned at 400 dpi |
Collection | Deloitte Digital Collection |
Digital Publisher | University of Mississippi Library. Accounting Collection |
Date-Digitally Created | 2010 |
Language | eng |
Identifier | HSReports_1968_Winter-p22-27 |