POLICY: Nixon's Other Crisis: The Shrinking Dollar

Throughout the U.S. economy's ups and downs of the past four years, President Nixon has never managed to rid it of the debilitating fever of inflation. Prices kept rising rapidly through the 1970 recession, in defiance of all economic nostrums. The increases subsided in part because of the wage-price freeze and Phase II controls, but in the five months of voluntaristic Phase III the economy's inflationary temperature has climbed to its highest point in two decades. The situation has helped create near chaos in stock and dollar-exchange markets.

Millions of consumers, stunned...

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