The Economy: The Dollar: A Power Play Unfolds

DURING the last quarter-century of worldwide turbulence, businessmen, traders and travelers have come to rely on a seemingly immutable fact of life. The U.S. dollar has remained the one major currency with an unquestioned and stable international value. Last week all that changed—perhaps forever.

With shocking swiftness, President Nixon's dollar defense measures knocked the pins out from under the non-Communist world's monetary system. Foreign government leaders, many of whom were on vacation, went scrambling to salvage some order out of the enveloping chaos. Canadian Prime Minister Pierre Trudeau broke off a holiday cruise...

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