Money: Abiding Interest

As 1961 draws to a close, U.S. economists are confidently looking forward to a rare phenomenon: a burst of economic expansion unaccompanied by the customary dampeners of tight money and sharply rising interest rates.

Historically, U.S. interest rates have almost invariably risen during recovery periods, when increased credit-buying by consumers and increased borrowing of expansion capital by industry have put a strain on the money supply. And last week the U.S. economy showed every sign of having completed its convalescence from the 1961 recession: in November, Washington reported, retail sales shot to an all-time monthly high of $19.3 billion, 5% over...

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