Evolution of the Policies of Developed Countries

IN CONSIDERING the difficulties that have come increasingly to affect the world economy, in general, and the international trading system, in particular, one must recognize the impact since the mid-1960s of the interaction between, on the one hand, the expansion of government intervention in the market process and the growth of rigidities in the economies of the developed countries and, on the other hand, the persistent pressures for adjustment created by a rapidly integrating, and therefore dynamic, world economy.1