Le Nord : revue internationale des Pays de Nord - 01.06.1944, Blaðsíða 202

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LE NORD
should increase in strength. The danger of discrepancies between
prices for wood and costs of production on the one hand and
the export prices on the other are obvious considering that ac-
cording to The Economist the index for wholesale prices in March
1944 is 164 (with August 1939 as a base) while the finnish index
for export prices for the same time is 239. The lucrativeness of
the wood-working industry is, however, doubtful. The ensuing
difficulties in levelling prices are therefore easily perceived even
if a certain reduction in prices may be considered in Finland. A
still graver consequence will of course follow if a fall in prices
occurs on the world market. It has been said in Sweden that
precautions in wage policy must be taken and this holds good
even more in Finland.
An easy way out would of course be to raise the exchange
value of foreign currency. The foreign value of Finnish currency
must obviously sooner or later be reduced, but it is still impos-
sible to decide the suitable point of stabilization. The matter is
also influenced by the margins which will be granted the various
states within the scope of an international system of exchange
after the war. In Sweden it has been stressed that margins for
fluctuations in rates of exchange would be desirable in order to
meet possible international tendencies of deflation and inflation,
at the same time supporting in principle the idea of stabilization.
It is obvious that Finland, where the rise in prices have been
greater than in Sweden, needs even wider margins.
It is too early, as mentioned, to discuss what initial point in
fixing the rates of exchange should be chosen. It is more im-
portant at the moment to decide what can be done in order
to avoid a continued rise in prices at home. It is true that the
rise in prices has been checked to a considerable degree during
the years 1943—1944 and especially the cost of living index
has become fairly v/ell stabilized. But a less strict rationing and
increased investments may cause latent tendencies towards raising
prices to develop and no one can say what further demands
may be placed upon state expenditure for warfare in northern
Finland and what other tendencies of inflation may ensue. De-
mands for rising wages if conceded to may raise the prices. On
the other hand there are obviously chances of reducing prices,
for instance if the scarcity of labour and goods is reduced. The
various factors are so far too uncertain for fixing a programme.
It is evident that anti-inflationist measures must be taken for