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Much of the dollar's recent strength is attributable to something the President has little direct control over: steep interest rates. At present levels of 17.5% for three-month deposits, American banks are paying interest rates far above the U.S.'s 13% inflation rate. The interest rate in West Germany is only around 9%, while in Japan it is about 8%. The high level of real return attracts many international investors to deposit their money in the U.S., thus strengthening the value of the dollar...

Author: /time Magazine | Title: Gold and the Dollar in a Flip-Flop | 2/16/1981 | See Source »

Searching for a new way to cut steep inflation and restore sound growth...

Author: /time Magazine | Title: The Biggest Challenge | 1/19/1981 | See Source »

Reagan confronts low growth, high inflation and steep interest rates...

Author: /time Magazine | Title: Business: Outlook '81: Recession | 12/29/1980 | See Source »

...election campaign, credit controls were loosened and money became less restricted. The prime rate fell to a low of 11% in July. Yet, after November's presidential election and a new burst of inflation, the Federal Reserve Board once again tightened money, and interest rates began another steep rise, quickly passing the spring's historic interest rate records...

Author: /time Magazine | Title: Business: Outlook '81: Recession | 12/29/1980 | See Source »

...racist cliche that the Chinese are supposed to be inscrutable and paradoxical, but the Peking Opera performance here does represent a paradox of sorts: it delivers full value for the steep ticket price, yet it is the shortest evening imaginable...

Author: By Sol LOUIS Siegel, | Title: Peking Opera | 11/18/1980 | See Source »

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