Friday, January 23, 2009
Sorry, another currency story, but it’s a good one
How bad is this fall in the pound? In a word: hideous. Measured against a basket of other currencies the pound has fallen by a quarter over the past year This is more than any previous devaluation in the past century. Greater even than in 1931 when the UK was forced to abandon the gold standard and saw the pound plummet by more than 24 per cent against the dollar. Greater than after Black Wednesday and the abandonment of the Exchange Rate Mechanism. Greater than 1967, when Harold Wilson was forced to make an extraordinary televised statement to the nation claiming that the "pound in your pocket" would not be worth any less after his devaluation.