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STABILIZING THE DOLLAR
[App. I
Fig. 12. The Index Number with and without Stabilization
The lower curve shows how the stabilization process would work (under the assumptions of subsection H) as contrasted with the upper curve which shows the actual course of prices.
Until the influence of the war was strongly felt, the stabilized index number would have kept usually within 2% of par; whereas the unstabilized index number rose 30%. Afterward, stabilization, limited in its influence (on account of the brassage) to 6% per annum, only partially restrained the soaring index number.
