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In response to Yushchenko's talk about Europe, the Russians started raising energy prices toward European levels.
The question, however, is whether throughout the system as a whole it will always act so as to move each of the prices toward its general equilibrium value.
According to diplomats in Pyongyang, North Korea this month devalued its currency, raised some prices toward market levels and granted large pay raises.
As long as serving one new customer costs next to nothing, the competition to attract as many customers as possible will drive prices toward zero.
He also drew the public's attention to what he called "unsustainable" rates of growth in the U.S. economy and "overextended" stock prices toward the end of the 20th century.
Significantly, though, the latest increases have finally nudged prices toward psychological barriers -- 2 German marks per liter or $3.70 per gallon, and 1 pound per liter or $5.50 a gallon in Britain -- that may breach European apathy about gasoline prices.
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