Economics ETDs

Publication Date



The fundamental idea that this study attempts to convey is that the devaluation of foreign currencies against the United States dollar and gold in 1949 are in large part responsible for the deficit which the United States has experimented since the early 1950’s in its international balance of payments. In other words, it is felt by this writer that the 1949 devaluations set a price for the dollar and gold which was too high to insure that in subsequent years the Untied States would be able to balance its international payments and receipts over a period of time sufficient to eliminate short-run fluctuation. Rather, the devaluations seem to have been such as to initiate a chronic condition which manifested itself gradually in an excess of United States payments over receipts which was compensated for by gold overflows and the incurring of dollar liabilities. In other words, these devaluations are perceived to have reduced the demand for dollars at the established dollar0gold price of $35 per fine ounce of gold to a level which made it preferable to redeem dollars in exchange for gold on the part of foreign interests. These are three alternative ways of destroying different aspects of the same situation.

Degree Name


Level of Degree


Department Name

Department of Economics

First Committee Member (Chair)

Wolfram Liefe

Second Committee Member

Gary Clyde Hufbauer

Third Committee Member

Pham Chung



Document Type


Included in

Economics Commons