II
INFLATION AND DEFLATION
”3
law providing for automatic quarterly increasesof all wages and salaries throughout the nexttwo years corresponding to every increase in thecost of living.
Well, I offer these reflections for what theyare worth. Whether or not they commendthemselves to your judgement, I am sure that thefollowing questions are those which you need toponder:—
1. Would a rise in the level of internal pricessolve your difficulties?
2. Can you solve your difficulties without arise of prices?
3. Is it not impossible anyhow to prevent arise in the long run?
4. If so, will you not be judicious to facilitatean orderly rise and to play for time meanwhile?
5. Whether you choose this course or another,
is there any sufficient objection to using the goldin the Bank of France to anchor the franc ex-change? v ...
0 Your obedient servant,
( ii) The Stabilisation of the Franc (1928)
One blames politicians, not for inconsistency,but for obstinacy. They are the interpreters,not the masters, of our fate. It is their job, inshort, to register the fait accompli. In this spiritwe all applaud M. Poincare for not allowinghimself to be hampered by a regard for consist-ency. After declaring for years that it would