Download e-book for iPad: America at 1750: A Social Portrait by Richard Hofstadter

By Richard Hofstadter

Demonstrates how the colonies built into the 1st kingdom created less than the affects of nationalism, glossy capitalism and Protestantism.

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10 Put simply, the United States was already a long-term net borrower before Asian savings accelerated. It is also difficult to reconcile the claim that the United States was a reluctant adjustor to other states’ actions and ambitions with the long-standing reality of American monetary power. Since the Nixon administration unilaterally ended gold-dollar convertibility and slapped surcharges on imports in August 1971, American politicians, Treasury officials and the Federal Reserve have not been in the habit of accommodating American macro-economic policy to what other states wished to do.

The dependency that it created on foreign capital had led three states in the region – Indonesia, South Korea and Thailand –into the clutches of Asian Savings and American Borrowing 35 the IMF, giving foreigners, and Americans in particular, the opportunity to demand structural reform of their economies in exchange for credit. 15 The United States’ financial and monetary power had allowed it not just to enforce harsh terms for access to immediate credit through the IMF but also to resist Japan’s attempt to establish a regional credit institution in the form of an Asian Monetary Fund that would lend money on less onerous terms.

What China needed, the government believed, was exchange rate autonomy, both from down- Asian Savings and American Borrowing 39 ward market pressure and upward American political pressure. In putting as much premium as it did on exchange rate autonomy, the Chinese leadership was reacting not just to the Asian financial crisis, but Japan’s experience in the second half of the 1980s. 32 Then Washington had forced the Japanese to accept first a rapid appreciation of the yen as part of the 1985 Plaza Accord and then a loose monetary policy to prop the dollar up when the American currency was weakening excessively later in the 1980s.

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America at 1750: A Social Portrait by Richard Hofstadter


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