The US-Dollar has inflated the world. Its vehicle is the present international monetary system of pegged exchange rates. This system which was introduced to stimulate International trade and division of labour between the different countries became an important promoter of world wide inflation.

Inflation is the most important economic problem in Germany today. Although the economy is still in a process of slow recovery and there are still excess capacities, inflation continues. Consumer prices increase at an annual rate close to 6 p.c. and the GNP deflator is close to 8 p.c. Economists...