Performance in the world economy continues to be governed by the depressing effects of a major currency realignment following the significant depreciation of the US dollar against the Yen and the D-mark since early 1985. In Japan and particularly West Germany, domestic demand is not yet rising at a rate sufficient to compensate for declining foreign demand. The deflationary effects of the currency realignment have therefore tended to offset the anticipated beneficial effects on world economic growth in 1987 of the fall in oil prices in the previous year.
|Number of pages||4|
|Journal||Quarterly Economic Commentary|
|Publication status||Published - 1 Aug 1987|
- Fraser of Allander Institute
- Scottish economy
- world economic outlook