Chapter II. The World Economy

Ray Barrell and Fiona Eastwood

National Institute Economic Review, 1988, vol. 125, 23-39

Abstract: Between June and July the dollar rose by around 5 per cent against the other major currencies, despite central bank intervention to hold the dollar down. There have been two major factors behind this strength. Firstly, the US trade figures improved in April and May and were considerably better than the market had anticipated. This reflected both some reduction in the volume and value of imports and an increase in the level of exports. Sentiment towards the US dollar has also been affected by the strength of growth in the other major industrial economies.

Date: 1988
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