6. In the 1995 election for the French presidency, the Socialist candidate, Lionel Jospin, vowed to halt all privatizations, raise taxes on business, spend heavily on job creation, and cut theworkweek without a matching pay cut. At the time Jospin made this vow, he was running neck-and-neck with the conservative Prime Minister Jacques Chirac, who espoused free-market policies.

(a) How do you think the French franc responded to Jospin’s remarks?

(b) In the event, Chirac won the election. What was the likely reaction of the French franc to this outcome?