the cycle of activity involving the level of international reserves is that between changes in crude oil prices and the changing levels of the international reserves. During the win ter of 1979 1980, the price of crude oil soared to $40 per bar rel.11 By the end of July 1984, the price had fallen to $27.10 per barrel.12
The dramatic price increases occurred in 1974, 1979, and 1980. Price reductions occurred each year from 1975 through 1978, as the industrialized countries entered into and recovered from a serious economic recession. Price reductions also occurred each year beginning with 1982 and extending through 1984, when the industrialized countries entered into another significant economic recession. Although recovery began in the United States in 1983, general economic recovery throughout the industrialized community of countries began only in 1984.
International reserves, for the purpose of this researc
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