Anglo-American Fight Against Inflation
The United States and Great Britain, whose military commitments span the globe and whose currencies support the international monetary system, are intent on maintaining prosperity without inflation. To that end, both countries have called on business and labor to exercise voluntary price-wage restraint. Price and wage increases (and price cuts), London and Washington insist, should reflect the average annual rise in labor productivity. For example, if nationwide productivity should rise by 4 per cent a year, wages may be increased at the same rate without generating inflationary pressures.
The danger signs of inflation have been growing more visible in both America and Britain during the year now drawing to a close. The British retail price index (Jan. 16, 1962=100) has risen almost ...