Despite the rapid increase in oil costs, the policy measures we have taken
to improve domestic economic performance have had a continued powerful
effect on our external accounts and on the strength of the dollar. A strong
dollar helps in the fight against inflation.
There has also been considerable forward movement in efforts to improve the
functioning of the international monetary system. The stability of the
international system of payments and trade is important to the stability
and good health of our own economy. We have given strong support to the
innovative steps being taken by the International Monetary Fund and World
Bank to help promote early adjustment to the difficult international
economic problems. Recent agreement to increase quotas by fifty percent
will ensure the IMF has sufficient resources to perform its central role in
promoting adjustment and financing payments imbalances. The World Bank's
new structural adjustment lending program will also make an important
contribution to international efforts to help countries achieve a
sustainable level of growth and development.