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U.S. Department of Energy
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International considerations associated with economic planning for recovery from a generalized disaster

Technical Report ·
OSTI ID:6912656

This report addresses international economic considerations in planning for recovery from a generalized disaster, including the geographical dispersion of economic activity and the importance of the US dollar in international trade. The discussion includes real trade issues and international monetary considerations or financial considerations, emphasizing the relationship between the two. Included in the discussion of international monetary considerations are the causes, consequences, and resolution of six historical financial crises which are used as analogues for planning for restoration of the international monetary system. Additionally, the foundation of the multinational enterprise and its possible roles in recovery are addressed. Although the report addresses several specific disaster scenarios and appropriate policy responses in reaction to them, a number of important general policy guidelines were discussed. First, international cooperation and coordination are of paramount importance in restoring the effective functioning of the international monetary system. Second, a policy of fixed exchange rates in the aftermath of an international disaster is ill-advised. Third, except for commodities crucial to national defense, domestic import and export controls cannot be justified. Fourth, the extent of real trade reduction during a conflict has widespread financial---as well as real---repercussions. The United States probably could withstand real trade disruptions during a conflict more successfully than many of its current trading partners. Finally, multinational enterprises might be important institutions in recovery from both real and monetary standpoints, acting as the international conduit for capital flows, trade flows, and in more serious disasters, price signals and international monetary and financial reconstruction. 91 refs., 5 tabs.

Research Organization:
Oak Ridge National Lab., TN (USA)
DOE Contract Number:
AC05-84OR21400
OSTI ID:
6912656
Report Number(s):
ORNL-6434; ON: DE88015322
Country of Publication:
United States
Language:
English