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

This article is part of our premium archives.

To continue reading and get full access to our entire archive, you must subscribe.