A Whiff off Panic

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There is no quick fix to the interest-rate dilemma that is causing current international economic problems and the nervous stock markets. Rates are high because monetary growth is being held low to curb inflation. But boosting the money supply, as some Administration critics urge, would only fuel inflation and eventually propel interest rates higher than ever. There is every reason to believe that, given sufficient time, the Reagan program of tight money, tight budgets and lower taxes could bring about renewed American economic growth. And the best thing that could happen to the international economy and world stock markets would be for the U.S. to get back on the road to strong growth and lower inflation. —By Christopher Byron. Reported by Mary Cronin/London and Frederick Ungeheuer/New York