The Economy: The Quiet Triumph of Devaluation

THE last time the dollar was devalued —by a stroke of Franklin D. Roosevelt's pen in 1934* —Budget Director Lewis Douglas declared: "This is the end of Western civilization." It was a sign of the economic times last week that, when Richard Nixon announced another dollar devaluation, the predominant reaction throughout Western civilization was one of relief. Richard Kattel, president of The Citizens & Southern Bank of Georgia, expressed the new American mood: "I think devaluation is a good thing. It will make us more competitive overseas. We have swallowed the hardest pill...

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