After The Currency Crisis, Global Growth?

The unraveling of the European Community's monetary system on Sept. 16 is bad news for German Chancellor Helmut Kohl and French President Francois Mitterrand, who crafted the Maastricht agreement to turn the ec into a tightly knit economic and political union. But the outcome of the late-summer currency turmoil is likely to be healthy for Europe and the entire world. While nations have grappled with recession and deflation, the stern anti-inflation monetary policy that Germany's Bundesbank thrust on European and other allies has proved tragically inappropriate. Now, the Germans must cut rates convincingly.

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