National Outlook

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deserves the bad press it has received' this year. Only if measured against overblown expectations of a quick fix of ills accumulated over several years can recent history be labeled disappointing. First off, the rate of inflation has dropped by half in just two years; a remarkable improvement, attained, incidentally , without resort to tinkering with broad-based price controls.

By Belinda K. Pearson Vice President and Asst. Economist Seattle First National Bank

More important for the future, the stiff-backed resistance of both consuniers and business to price hikes, the willingness of business to shorten buying commitments and live with modest inventories, and the relative moderation of current-year wage settlements all suggest a ratcheting down of infl ation expectations.

Story at a Glance

Healthy, broad-based econom ic growth in 1977 with the foundations in place for a sustained expansion matching the 1960s.