The purpose of this article is to discuss the factors primarily responsible for the rise and increased variability in interest rates in recent years. The analysis is not intended, nor can it be used, to explain every jiggle and jog in interest rates that occurred during this period.
The Reagan administration has embarked on an ambitious program to slow the growth of federal spending, a program that is part of an overall economic plan to reduce inflation and promote sustainable economic growth.
The signing of ‘‘voluntary’’ agreements to reduce imports has made considerable headway in recent years. The recent accord to limit automobile imports from Japan is an example of such an agreement.
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