Balance Of Payments: A Confluence of Self-interest

The strains caused by British devaluation and U.S. curbs on the outflow of dollars last week prompted continental Europe to begin changing its economic course.

Top European financial experts agreed that their countries must dip into their stores of gold and monetary reserves to spur economic growth. By doing so, the Europeans expect to help both themselves and other parts of the free world to resist rising unemployment and a slowdown in international trade, two deflationary forces unleashed by the U.S. and U.K. actions.

As a remarkable confluence of self-interest among nations, the new policy was especially welcomed by the U.S.,...

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