When prices at the consumer level undergo a cyclical rise, one frequently hears the question being asked by wlde circles of the population whether such a development should not be checked by means of a price stop.

Two developments are currently shaping Europe's financial and foreign exchange markets: Innovations, including the private use of the ECU, and the erratic fluctuations of the US dollar. Professor Nydegger analyses the causes and effects of these developments from the perspective of the world...