Paper Money

As the world economy is thrown off balance by the unleashed rise in inflation, Adam Smith steps in to put skyrocketing costs and dwindling dollars in perspective. Smith explains the causes for inflation and devaluation. While Americans are groping for solid assets in which to invest their shaky U.S. dollars, they become caught up in the rush to bolster our financial security. One result of this is the current real estate mania which has priced once affordable homes right out of the market. But OPEC is Smith's target. How big a threat do the Arab oil pirates pose to global economics? According to Smith's inflation formula, we are caught in a cycle of "oil, banks, loans, inflation." He suggests that we develop "the capacity to work together" and make the sacrifices necessary to stabilize the economy. [©1981]