Many transition economies have been unable to reduce inflation to low levels on a sustained basis. Monetary growth has been a dominant factor. Relative price adjustment and nominal wage shocks are also partly to blame, but their impact on inflation can be modified by monetary and exchange rate policy.
Why have the prices of gold been so volatile and risen so sharply above the levels of the early 1970s? The author comments on the factors affecting supply and demand that played a role in the dramatic turns of the market.
The picture emerging from forecasts for the developing countries in the 1980s is one of the advent of an age of global scarcity in a world of increasing populations. There are varying views on the degree of tension inherent in the situation, on the ways this tension is likely to manifest itself, and on how it can be alleviated; there is no disagreement on how somber the prospects are. Yet the developing countries have many choices to counter these prospects, if they choose to make them.
The fifth session of the United Nations Conference on Trade and Development, held in Manila during May and early June 1979, evoked widely differing reactions. This article, by an observer at the meeting, assesses the results of the session in the light of the current discussions on North-South issues and the changing international economic environment.
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