The unregulated, high-speed 100-billion market in Euro-dollars has been a hot topic of debate in the upper reaches of...

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EURO-DOLLARS: The Money-Market Gypsies

The unregulated, high-speed 100-billion market in Euro-dollars has been a hot topic of debate in the upper reaches of finance and economics. No wonder. Despite Jane Sneddon Little's sometimes witty, always brave efforts to untangle the mysteries, we're still not sure. . . . Are they money or ""near-money substitutes?"" (Not money -- not perfectly liquid -- but pretty damn dose.) Are they an engine of inflation? (The Monetarists and Keynesians disagree.) Are they the source of our balance-of-payments deficit? (. . .And so on.) Born around fifteen years ago in an era of rampant internationalism, these time deposits of American dollars in banks located in London, Canada, the Bahamas, Singapore, have come to serve as a reserve asset and vehicle currency for world trade, challenging the longstanding dominance of Wall Street as the center of the action. If you're fascinated by money in any of its manifestations and movements, this is the biggest, multinational ball game of them all. While some banks will accept individual deposits of as little as $15,000-$20,000, the million-$ players are more likely to be banks, governments, large corporations, or big-time operators like James Ling or Kirk Kerkorian (whose MGM coup was financed through the easy requirements of the Euro-dollar market). Little examines the role of the Eurodollar in the increasingly frequent international currency crises, the change from fixed to floating rates of exchange, the future of U.S. controls like ""Regulation Q"" that have fostered the flight of dollars abroad, the possibility of Common Market monetary federation. Surprisingly, the compelling subject of the new petrol-dollars is by-passed -- and surely their future will be the making of our own. As accessible an introduction as you're likely to find on a leviathan of a macro-problem that stymies even those White House consultants.

Pub Date: Jan. 29, 1974

ISBN: N/A

Page Count: -

Publisher: Harper & Row

Review Posted Online: N/A

Kirkus Reviews Issue: Jan. 1, 1974