[I]t is not speculation, leads and lags, and the rest which cause the trouble. It is their impact against fixed exchange rates. With a floating excha… - Enoch Powell

If identical goods were being produced at widely differing efficiency in different parts of the United Kingdom or if the United Kingdom and Germany, or Japan, or the United States, were part of a single unit with a single currency, then of course the less efficient producers would be knocked out. That is why Germany is so keen for Britain to go into the European Monetary System, so that it can wipe out the British industries which it is in competition.

Perhaps the most insidious danger today is the notion, which many accept unreflectingly and others propagate sedulously, that a stable value of money is incompatible with economic progress or with a high level of employment. Theory and experience alike refute such a notion. I have already reminded you that throughout sixty years of Britain's golden age of expansion in every sphere, the value of money remained virtually constant. So far from it being true that inflation and a high level of employment hang together, the fact is that, for a nation in Britain's situation, dependent on world trade and commercial dealings with other countries for its livelihood, continued inflation is the greatest threat to full employment. It would be a tragedy if the Government or the nation allowed themselves to be diverted by these false fears from the single-minded pursuit of plain and elementary duty: the duty to secure and preserve the integrity and stability of the medium of exchange, on which depend all the economic dealings of man with man.

The collective wisdom and the collective will of the nation resides not in any little Whitehall clique but in the whole mass of the people—in the producers, listening to the voice of the customer at home and abroad; in the savers and investors, using their eyes and their brains to lay out their resources to best advantage; in the consumers themselves, expressing through all the complex nervous system of the market their wishes, their needs, their expectations. In short, the true national economic plan is being made all the time by the very people and institutions which the intellectual arrogance of the Socialist affects to despise. "Under Tory free enterprise" says Labour's policy, "no limit is set to the amount of our national resources and intellectual talent consumed by the popular newspaper, the glossy magazine, the cinema, commercial television and the advertising industry." What a world of contempt for the ordinary man and woman breathes in that haughty sentence!