In This Review

America In The World Economy: A Strategy For The 1990s
America In The World Economy: A Strategy For The 1990s
By C. Fred Bergsten
Institute for International Economics, 1988, 250 pp.
Day Of Reckoning: The Consequences Of American Economic Policy Under Reagan And After
Day Of Reckoning: The Consequences Of American Economic Policy Under Reagan And After
By Benjamin M. Friedman
Random House, 1988, 323 pp.

"The current prosperity," says Bergsten, "has a precarious foundation." The accompanying "sense of economic well-being," according to Friedman, is "an illusion based on borrowed time and borrowed money." Friedman goes into detail in a hard-hitting, eloquent condemnation of the government's fiscal misdeeds. Bergsten puts his emphasis on a set of policies calculated to get us back into international balance with the least pain-if all goes well. Each book strikingly demonstrates the inextricable connections needed between the internal and external measures. Without agreeing in all particulars, these very good books support and complement each other. Together with After Reagan by C. Michael Aho and Marc Levinson (reviewed in Foreign Affairs, Winter 1988/89) they provide not just starting places for the new administration but also analyses against which to test policy for some time to come.