Western Europe: The High Cost of Living


The price of prosperity has come high in Europe, where wages and prices have vied in outracing each other. Unlike the U.S., which is worried about how to keep its economy advancing, Europe has had to worry about how to stop its boom from moving too fast. The Continent was actually relieved by predictions that most economies will slow down in 1965, but it has not relaxed its vigilance against inflation. To prevent further rises in wages and prices, West Germany's Bundesbank last week raised its discount rate from 3% to 3½%, serving notice that prospering West Germany feels...

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