Sterling in Decline

This text takes the devaluations of 1931, 1949 and 1967 as a metaphor for Britain’s changing position in the world economy. It traces the decline of the pound sterling from the world’s pre-eminent currency, together with the dollar’s rise to prominence. It also challenges the conventional wisdom regarding the implications of events in foreign exchange markets, and of British foreign economic policy generally, for the macroeconomic performance of the British economy. This second edition features a new introduction that frames the analysis in light of subsequent contributions and brings the story up to date. It draws out the implicatons of sterling’s troubled 20th century history for the country’s decision of whether to adopt the euro.

Author Biography

SIR ALEC CAIRNCROSS was Master of St. Peter’s College, Oxford and held a variety of high positions in postwar Labour Governments. – BARRY EICHENGREEN is George C. Pardee and Helen N. Pardee Professor of Economics and Political Science at the University of California, Berkeley, Research Associate of the National Bureau of Economic Research, and Research Fellow of the Centre for Economic Policy Research .