ABSTRACT
This chapter explains the form that the actual decision made by Congress has taken and the new powers given to the Secretary of the Treasury. It examines the capital needs of the American economy at the time of the repeal. The chapter also examines some of the statistical evidence available on the effects of the repeal on international integration. The repeal of the thirty percent withholding tax is a measure that impacted considerably the international capital markets. The Eurodollar market is the largest component of the Eurocurrency market, approximately three-quarters of all Eurocurrency deposits. There are many similarities between the Eurobond market and the Eurocurrency market. The growth in importance of international political economy has been evidenced by the mushrooming of studies which have applied concepts and methods of economics and political science to areas at the borderline between the two disciplines.
