Deliberate Increase of Prices

Abstract

Even the most fanatical advocates of joining the Common Market admit, however reluctantly, that it would mean a sub-stantial increase in the cost of living. Yet, knowing this, they nevertheless favour a policy that is bound to accentuate the rising trend in prices, even though they have been escalating already at an alarming rate lately. During a period of a declining trend in prices, such as the world experienced most of the time between the wars, the effect of joining the EEC would be offset by the general downward trend. Even during a period of stable prices the extent of its effect might be acceptable. But it would be an unpardonable degree of short-sightedness to take deliberate action to cause a substantial extra rise in prices amidst a period of creeping but escalating inflation.