Abstract

Le Monde's financial analyst Paul Fabra captured the essence of the Western “Alliances'” difficulties in an article describing European reactions to Carter and Reagan economic policies. Under Carter he noted, the U.S. initially followed an expansionary policy of low interest rates and increased public spending driving the dollar downward. The cheaper dollar increased both American exports to Europe and European complaints about American competition. Reagan reversed course and the Europeans had a different, though equally intense set of grievances. “The fact is,” concluded Fabra, “Europe is uncomfortable with a strong or weak dollar.” He might have said a strong or weak America