Sterling in Decline The Devaluations of 1931, 1949 and 1967; Second Edition

by Cairncross, Alec; Eichengreen, Barry

• ISBN13: 9781403913050
• ISBN10: 1403913056
• Edition: 2nd
• Format: Hardcover
• Copyright: 2003-11-08
• Publisher: Palgrave Macmillan

Summary

This is a new edition of Sterling in Decline with a new introduction by Barry Eichengreen. The book traces the decline of sterling from the world's pre-eminent currency alongside the dollar's rise to prominence. There are parallels to be drawn with the euro's emergence as a full-fledged competitor to the dollar for international currency status. The new introduction will bring sterling's story up to date and draw out the implications for the dollar and the euro.

Author Biography

Alec Cairncross is formerly St. Peter's College, Oxford.

Barry Eichengreen is at the University of California, Berkeley.

Table of Contents

Foreword	vii
Prologue to the New Edition	ix
1 Introduction	1	(9)
2 Britain's Exchange and Trade Relations	10	(17)
International Trade and Payments	12	(5)
British Trade Policy	17	(4)
Control of Overseas Lending	21	(2)
The Sterling Area and Clearing Arrangements	23	(4)
3 The 1931 Devaluation of Sterling	27	(84)
Reconstructing the Gold Standard System	27	(17)
Initial Difficulties	44	(8)
The Anatomy of Crisis	52	(20)
Banking Crisis or Balance of Payments Crisis?	72	(11)
Macroeconomic Effects of Devaluation	83	(19)
Conclusion	102	(2)
Appendix	104	(7)
4 The 1949 Devaluation of Sterling	111	(45)
A Narrative of Events	112	(27)
Lessons of the 1949 Episode	139	(3)
The Economic Background	142	(9)
The Impact of Devaluation	151	(5)
5 The 1967 Devaluation of Sterling	156	(62)
First Difficulties	160	(6)
The Initial Position of the Labour Government	166	(7)
The Formulation of Balance of Payments Policy	173	(3)
The Exchange Crises of 1965 and 1966	176	(5)
The Impact of Deflationary Measures	181	(10)
The Failure of Deflationary Measures	191	(2)
The Aftermath of Devaluation	193	(4)
The Impact of Devaluation	197	(16)
Conclusion	213	(5)
6 Concluding Reflections	218	(14)
The International Economic Situation	218	(3)
The Domestic Economic Situation	221	(2)
Common Elements in the Three Devaluations	223	(3)
The Development of Thought on Devaluation	226	(2)
The Effectiveness of Devaluation	228	(4)
References	232	(13)
Dramatis Personae	245	(8)
Index	253