Measuring International Competitiveness
On 9 April 1976, the then Chancellor of the Exchequer, Denis Healey, authorised the Treasury to issue a statement declaring that there was ‘no economic justification’ for the sharp fall in the value of sterling in the previous days, which had taken the rate down from $2.02 in February to around $1.82. It was almost without precedent for the Treasury to make such a statement; but once the government had been committed to the view that the fall in the exchange rate was excessive, they had little option but to agree that the reserves should be used to prevent it falling any further. What evidence was available at the time about the competitiveness of the British economy?
KeywordsExchange Rate World Trade Real Exchange Rate Import Price International Competitiveness
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Notes and References
- 5.R. W. Green, ‘Commonwealth Preference: UK Customs Duties and Tariff Preferences on Imports from the Preference Area’, Board of Trade Journal Resolution: Global (31 December 1965).Google Scholar
- 6.R. A. Allen and R. N. Brown, ‘The Terms of Trade’, Bank of England Quarterly Bulletin Resolution: Global (September 1978).Google Scholar