Japanese-American Economic Relations and Their Impact on Overseas Military Budgeting.

摘要

The economic relationship between the United States and Japan has undergone significant changes recently, causing changes and repercussion beyond international economics, including U.S. military budgeting. The U.S. Navy's present system of budgeting for overseas activities assumes stable exchange rates. Fluctuating exchange rates are now basic to the operation of the International Financial System. It is proposed that budgeting be done using a target rate, with fluctuations above and below that rate going into general Treasury receipts or supplemented by a specific appropriation, as the case may be. Otherwise, local overseas commanders have budgets nearly totally dependent upon exchange rates, which can convert the original intent of the granted budget when the dollar's value varies in either direction. This problem is particularly acute in Japan when the dollar's value has changed drastically and often, and where the Navy has a significant presence. (Author)