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America's power has declined since 1945, yet America's democratic purposes are more widely emulated in the world today than ever before, and economic growth and employment in the United States in the 1980s reached levels that rivaled the boom years of postwar prosperity from 1947-1967. Challenging the pessimists who focus only on the decline of American power, this book argues that outcomes depend much more on how America defines its political identity or national purposes in the world community and what specific economic policies it chooses. In recent years, America has projected a more self-confindent political identity, anchoring an unprecedented trend even in the communist world towards freer political institutions; and future American economic policy choices, especially the need to reduce the budget deficit, still hold the key to preserving and enhancing what considerable power the United States retains. This pathbreaking book is intended for the general reader, but will be essential reading not only for economists, politicians, and policy makers, but also for scholars and students working in economics and international relations.

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CHOICE Review

Nau an academic political scientist with US government experience argues that allegations that the US is in decline are faulty and premature. Nau contends that America's real global power is based not so much on material strength as on political leadership. He asserts that America's position in the world depends on how it defines its national and international objectives and how efficient its economic policies are in harnessing its material resources to these objectives. Nau offers a comprehensive chronological review and assessment of the US role in the international economy since 1945 in the context of global political developments. Although conceding a relative decline in US economic power, he maintains that the US remains the most important country, with a vast potential to influence world affairs. The presentation would have been strengthened had the authors also addressed other potential centers for international economic and political leadership, i.e., Japan and a unified Europe. Nau's review and interpretation reflect his area of expertise, i.e., international relations, rather than formal economics. Thus, his treatments of issues, though full of insights, are broad and sweeping rather than analytic. For upper-division and graduate audiences. -C. J. Siegman, Federal Reserve Board