At present, there are three categories of intetion rates in the imperianst counles.
A low inflation rate of 5% in Switzerland United oraLes inflation rate in the U.S. is again showing a tendency to exceed 5%)
An inflation rate of roughly 8 to 10% in the benelux countries. Japan. Sweden, Austria, Denmark, Canada, and France where toe rate is movine above lum).
An inflation rate of roughly 15% in Great brutain tav and Dal In the capitalist jungle therefore, the specuiators ineviaoly set their signes on a rise in the price of Swiss francs and German marks and on a decline in the English pound, the lira, and the French aranc However, while speculation is the result it also tends to reinforce inflation. In fact, a pronounced decline in a currency involves a general rise in the price of imported products. Over the last Two decaces. the internationalization of production in the capitalist countries has greatly increased. When the currency of a country declines in relation to those of countries from which it imports heavily. then higher prices will have to be paid for these products in terms of the national currency. This accentuates the rise of all prices on the domestic market and thus the increase in the cost of living.
It might seem at first glance that higher prices for imported products would result "national 1972 the export of English and Italian products, since these goods would be cheaper abroad. That is why the British and Italian bourgeoisies have already been accused of promoting the depreciation of "their" currencies so as to strengthen their competitive positions.
reality things do not happen so mechanically. First of all, some imported products cannot be substituted for, at least in the short run. These include certain raw