THE MILD REPERCUSSIONS OF A DEFT DEVALUATION

CURRENCY devaluations by major countries were once regarded as cataclysmic events likely to cause global shock waves that would disrupt trade, employment and international investment. Last week, when world money markets reopened after France's surprise 12½% devaluation of the franc, the repercussions proved to be notable for their mildness.

Fourteen African countries that once were French colonies devalued their franc-linked currencies and the Belgian franc came under heavy selling pressure, but the more important world currencies fared reasonably well. As expected, speculators sold British pounds and bought undervalued German marks, but not...

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