In This Review

The Coming Soviet Crash: Gorbachev's Desperate Pursuit Of Credit In Western Financial Markets
The Coming Soviet Crash: Gorbachev's Desperate Pursuit Of Credit In Western Financial Markets
By Judy Shelton
Free Press, 1989, 246 pp

Because money is fungible, all Western credit-especially in joint ventures-is "the transfer of a strategic resource" that will strengthen the U.S.S.R. in military as well as other ways. Therefore the United States should "initiate a joint effort among Western allies to impose parallel restrictions" on credit to those imposed on goods by COCOM (which the author regards as having produced some extremely worthwhile results). In support of this argument Ms. Shelton of the Hoover Institution deploys a good bit of historical and current data on East-West credit and an analysis showing that the Soviet budget is seriously out of balance. She is unclear on what terms the credit ought to be rationed if it is not to be denied altogether, or whether the rather flashy title describes a Western objective.