ABSTRACT
Seasoned international investors of the late 1980s can well imagine that the dollar might rise or fall against the mark by as much as 50 per cent in two years or less. They have the experiences of 1971-73, 1976-78, 1980-81, 1983-85 and 198586, to draw on. It was quite different in spring 1971, when the mark-dollar rate had just started to float. The praises are completely unsung of any investor or market commentator who in mid-1971 speculated that the mark would rise by a further 60 per cent against the dollar during the next two years.
