This leads to the second phenomenon, which we will call equi-linkage. Three equally bulky economies are now connected to each other with a set of linkages that are not identical but significant. That simply means that Asian economic policy during the 1950s had little effect on the United States. Therefore, the United States could permit Asian economies to protect themselves from the United States, creating asymmetric rules. That is no longer the case.
Policies adopted by Asia affect the United States and Europe, and so on.
Three of these regions are of roughly equivalent bulk. Each region affects the other in its policies. The potential for political confrontation is enormous. The Federal Reserve Bank is naturally concerned about inflationary pressures, which can be seen in the rise of commodity prices on a world-wide basis. The natural response of the Fed is to increase interest rates in order to cool off the economy and introduce greater discipline.