currency realignment

And some say a currency realignment alone can never cure the American trade deficit.

The pact could also involve policy commitments to support the currency realignments.

More significant in the long run are the effects that currency realignments and other measures will have on Czechoslovakia's foreign trade.

Nonetheless, he agrees about the limits of currency realignments.

But there needs to be a mechanism of adjustment between countries that do this - which is normally achieved through currency realignment.

This currency realignment reduces the Australian price advantage over Gallic competitors.

Indeed, the currency realignment forced by the German policy of tight money and high interest rates could do a lot of good in the short run.

There are three macroeconomic reasons for today's level of foreign investment here: the Federal budget deficit, the trade deficit and the currency realignment.

The difference between the two institutions resides precisely in the fact that currency realignment is possible in one case, but not in the other.

The bank would do this if it decided it wanted to avoid the potential damage from either a currency realignment or interest rate hikes in other countries.

That in turn would force higher rates in Europe or a major currency realignment, which West Germany's European neighbors have been resisting.

It is important first to understand that the driving force behind currency realignment was the desire of European countries to lower their interest rates independent of Germany.

In the first, governments would pledge to work toward coordination of fiscal and monetary policies through the I.M.F., reducing the pressures for currency realignments.

That approach came after both Governments realized that more than a decade of negotiations and currency realignments had failed to reduce the American trade deficit with Japan.

The currency realignment resulted in a rapid rise of United States costs in Japan, which the Japanese government, upon United States request, was willing to offset.

LEAD: Dollar Resumes Fall The dollar lost more than 1 percent of its value against the German mark in heavy trading that followed a European currency realignment.

But rather than just talking the currency down, Washington should try to pursue a formal agreement with Europe, Japan and China that addresses not only currency realignments but also the domestic policy changes needed to back them up.

In some markets, traders and investors were disappointed that the two currency realignments over the weekend - the devaluation of the Spanish peseta and the Portuguese escudo by 6 percent - did not lead to a cut in interest rates by the German Bundesbank.

Jim O'Neill, chief economist of Goldman Sachs, said he thought China and other Asian countries had already shifted a big part of their reserves out of the dollar - perhaps preparing for a currency realignment - and could thus change their exchange rate without causing much stress to interest rates in the United States.