ABSTRACT

Energy prices have moderated in the last several years, but only because of soft international demand and economic pressures on OPEC members to produce their quotas. Energy costs are still determined largely by forces outside the control of the United States. The steep climb in exports, the fall, and the rebound can all largely be explained by changes in international macroeconomic conditions and by international exchange rates. Initially international capital flows served to finance trade and facilitate foreign investment. However, the foundations of the hegemony of international finance really began in the last 1950s with the emergence of the Eurocurrency market. International banks began using the Eurocurrency market to avoid domestic interest rate ceilings and reserve requirements. Moreover, US agriculture depends on the less developed countries for its growth markets, and it is these countries that bear the brunt of new protectionism.