U.S. TREASURY AIDE WARNS ON INFLATION
Thomas Berger, Deputy Assistant
Secretary of the Treasury, said that a further drop in the
exchange value of the dollar could cause prices to go up and
trigger inflation.
    He told a meeting of the President's Export Council that
the Japanese and the Germans have cut their profit margins to
reflect recent drops in the dollar, so prices have remained
much the same.
    But he added that if the dollar dropped further there could
be inflation in the United States.
    Berger also said that a further devalued dollar may cause
economic depressions in some U.S. trading partners, and that
would not be in America's interest because it would close those
markets to U.S. goods.
 Reuter
