In This Review

Deficits and the Dollar: The World Economy at Risk
Deficits and the Dollar: The World Economy at Risk
By Stephen Marris
Institute for International Economics, 1985, 343 pp
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Among the many analyses of what is wrong with the world economy, this one stands out for the thorough and sophisticated way it links the domestic features of major national economies with the international disequilibrium they have produced. The resulting prognosis is gloomy as it shows that partial measures (for example, the reduction of the American budget deficit) will be inadequate to avoid a "hard landing" for the world economy. To do "the right thing," the United States, Japan and the major countries of Western Europe will have to reverse their policies of recent years. Some fascinating scenarios are drawn from a model, but even greater interest attaches to the author's judgments and his sharp observations reflecting his nearly 30 years of work in the most sensitive spots of the OECD.