THE OPTIMAL RATE OF DEVALUATION*
MANUEL GUITIAN
International Monetary Fund
‘Illegal price rises in France since devaluation.
New York Times, p. 1 said in a report from Paris that almost a quarter of the retail stores visited by French government inspectors have raised their prices illegally since the devaluation of the franc two weeks ago. This finding by the Ministry of Finance has caused indignation and has contributed to the scepticism surrounding efforts to redress France’s external finances, the paper said.’
IMF, Morning Press (August 22, 1969)
The quoted paragraph describes precisely the problem we want to analyse. The questions we plan to deal with, are: ...
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