Looking The Other Way

The U.S. lets its currency take a steep dive

At first the strategy was purely a matter of debate and speculation. It was the question of the decade. What would the Government do to prevent Black Monday from turning into Bleak '88? Now, less than a month after the stock- market crash, the Reagan Administration's plan has emerged in sharp relief. The main objective: avoid a 1988 recession at almost any cost. That means encouraging the Federal Reserve to pour money into the economy and reduce interest rates. But in doing so, the Administration has had to make a sacrifice, the U.S. dollar. Treasury Secretary James Baker, the chief architect...