Observations on the Structure of World Trade and Payments

Abstract

EVENTS intimately linked to our foreign relations have profoundly affected the level of economic activity in the United States and the character of our economic progress and stability. They cannot be disregarded by those concerned with the level of economic activity in this country. Furthermore, those concerned with the economic policies of the United States must also be concerned with the impact of those policies upon the rest of the world because of the great importance of the United States in the world economy, and because of the link between economic, political, and military events at home and abroad. Since the United States cannot ignore the far-reaching and indirect effect of its policies and decisions, the American people and their government require a detailed and systematic understanding of the economic interrelationships among all countries of the world. Even more, to exercise the international leadership which our great size and resources impose upon us, we must be in a position to assess the effect of developments and actions everywhere upon the political and economic strength of the free world. This article considers a few of the salient features of world economic relations which should always be kept in mind in assessing economic policy alternatives.