1945

Introduction

image of Introduction

A recovery in economic activity in the developed market economies began in mid-1975 and continued throughout 1976, though with increasing uncertainty as the year advanced. The hesitancy stemmed mainly from the lack of vigour in .fixed investment in the business sector. This reflected the persistence of serious imbalances, both internal and in the international economy. A substantial proportion of productive capacity remained under-utilized, and unemployment rates continued high by historical standards in most industrial countries. The rate at which prices were rising, though appreciably reduced in many countries, also remained uncomfortably high and, in the face of some supply difficulties and various wage negotiations and price determinations that seemed to anticipate further increases in costs, inflation continued to be regarded as the prime challenge to the formulation of economic policy as 1977 opened. As rates of price increase differed markedly from country to country, this internal imbalance was a major influence on the extent of external imbalance, which was not always overcome by currency depreciation, with its adverse impact on domestic costs.

Related Subject(s): Economic and Social Development
/content/books/9789210452243c003
dcterms_title,dcterms_subject,pub_keyword
-contentType:Journal -contentType:Contributor -contentType:Concept -contentType:Institution
10
5
This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error
aHR0cHM6Ly93d3cudW4taWxpYnJhcnkub3JnLw==