Andrew Shonfield
Essay
Special
1979
The troubles of the dollar, intermittently rising close to the crisis point during the year, once again dominated the international economic system. It became evident by the summer that the November 1978 measures of massive international support for the dollar had not worked as planned. Part of the trouble was that the post-1975 U.S. economic expansion proved to be more robust than had been supposed; moreover, the Federal Reserve's deflationary stance seemed to the rest of the world unconvincing. So in the end the American boom had to be publicly and unmistakably decapitated. This was done on October 6, with all the appropriate gestures, by Mr. Paul Volcker, who had taken over the chairmanship of the Federal Reserve System a few weeks earlier.
Capsule Review
Jul
1976
Essay
Jul
1963
In 1962 the European enthusiasts in Brussels were explaining regretfully that although British membership would slow down the process of European integration-perhaps severely impede the whole movement toward a United States of Europe-it was a price that had to be paid for widening the geographical spread of the Community. No doubt these people, while regretting the manner of General de Gaulle's rupture of negotiations with Britain, are now privately relieved that the price will not have to be paid. Their view is that Britain's inherent weakness is such that she will be compelled sooner or later to come back and knock on the door again and plead for entry into the European Economic Community (E.E.C.). On the whole, better later than sooner. The European Community will by then have consolidated itself; it will be able to impose its terms with less difficulty and, in fairness it should be added, will be less niggling about making small concessions which may contravene the letter, though not the spirit, of the Treaty of Rome.
