The world economy [August 1987]

Ashcroft, Brian and Boyle, Stephen and Draper, Paul and Harrigan, Frank and Heeley, John and Jenkins, Iain and Lockyer, Cliff and Love, Jim H and McGregor, Peter and McNicolI, Iain and Perman, Roger and Simpson, David and Stevens, Jim and Walker, Jim (1987) The world economy [August 1987]. Quarterly Economic Commentary, 13 (1). pp. 3-6. ISSN 2046-5378

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    Abstract

    Performance in the world economy continues to be governed by the depressing effects of a major currency realignment following the significant depreciation of the US dollar against the Yen and the D-mark since early 1985. In Japan and particularly West Germany, domestic demand is not yet rising at a rate sufficient to compensate for declining foreign demand. The deflationary effects of the currency realignment have therefore tended to offset the anticipated beneficial effects on world economic growth in 1987 of the fall in oil prices in the previous year.