Eighth District member banks experienced a moderate increase in net income in 1975, a year of recovery and restoration. The financial strength of banks in the Eighth District generally improved during the year. Capital cushions were built up and debt was reduced. In the early 1970s when demand for credit was strong, many banks expanded their loans but frequently showed little growth in their capital accounts.
One of the most controversial issues in the area of international trade and finance has been that of the relative desirability of fixed versus floating exchange rates. Disagreement on this issue is widespread and has been, in the recent past, the major stumbling block to a general agreement within the International Monetary Fund (IMF) regarding the future form of the international payments mechanism.
New housing construction has been on the upswing since early 1975, following a severe downturn in 1973 and 1974. In many respects the current housing recovery is similar to other postwar recoveries, although apartment construction has not rebounded to the extent observed over similar periods in the past. Some perspective as to the nature of the current housing recovery can be gained by comparing its cyclical characteristics with those of previous recovery periods and by surveying the impact of several relevant economic variables on recent housing industry patterns.
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