THE CURRENCY PROBLEM: German Success Is Europe's Worry

AT the eleventh annual meeting of the International Monetary Fund last week, Britain's Chancellor of the Exchequer Harold Macrnillan spoke somberly: "The financial policy of the United Kingdom remains unchanged. However, we shall continue to take such steps as we can to liberalize our arrangements for trade and payments." With these words, Macmillan dampened a cherished hope of economists everywhere that free world currencies would soon become fully convertible, thus permitting anyone earning money in foreign trade to change it into any other currency, spend it where he chooses without restriction. The explanation is that the pound sterling, dominating...

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