The Washinton Realignment aims at adjusting the distortions of exchange rates which have arisen during the past years. In doing so, new data have been set for the future. These data have been fixed by the industrial countries. The less developed countries (LDCs) are affected thereby without...

The exchange rate of the US dollar fell sharply last year. What part was played by the adverse “fundamentals” of the US economy, the large current account deficit, the country’s heavy foreign indebtedness and the substantial budget deficit? How will the dollar behave in future?