ABSTRACT
The United States emerged virtually unscathed from the fires of war as the dominant producer and supplier of the world. The unipolar mechanism in the world economy centering on the US dollar lasted throughout the 1950s, providing a stable basis for recovery and growth. Japan is probably the only major nation in the world for which this tragic prospect is a reality. As a result of this acute vulnerability in the realms of raw materials, energy, and food resources, Japan has the least economic security of any major nation. The oil crisis brought a sudden shift in the international capital flow, with the oil-producing nations registering enormous surpluses and importing nations experiencing equally dramatic deficits. Probably the most serious scars left by the oil crisis are the perpetual nightmares that experience will inflict on the economies of oil-importing nations. The major problem facing the world economy is the scars of disequilibrium left by the oil crisis.
