Don't Devalue The French Franc
In "France needs a dose of reality" (Editorials, Oct. 23), you suggest that France should devalue the franc. A fatal recommendation: Devaluation of the franc would cause interest rates to rise, not fall. Witness the experience of Italy. Numerous devaluations have helped Italy solve its budget problems, but they have always made for higher interest rates.
France certainly should not devalue against the German mark: Its trade balance and balance of payments with Germany are strongly in surplus, and price developments have been favorable.