john07
Labour & Co-operative
Posts: 15,788 
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Post by john07 on Oct 18, 2018 15:06:11 GMT
This set me wondering what would have happened if Labour had devalued the pound soon after assuming office and blamed it on mismanagement by the Conservatives.
How would that have panned out?
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Post by Davıd Boothroyd on Oct 18, 2018 16:12:36 GMT
Probably would have made the 1966 election less of a landslide, but would have helped in the long run and made things easier in 1970.
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mondialito
Labour
Everything is horribly, brutally possible.
Posts: 4,961
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Post by mondialito on Oct 18, 2018 17:00:20 GMT
Probably would have made the 1966 election less of a landslide, but would have helped in the long run and made things easier in 1970. If Wilson aped the behaviour of a less worthy successor, he could have just waved Maudling's note about like a golden ticket and got his landslide in '66. |
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Post by Davıd Boothroyd on Oct 18, 2018 17:09:55 GMT
I think it was actually a remark by Maudling, not a note, but yeah. Callaghan didn't mention it until the 1980s, after Maudling was dead. But then Jim Callaghan was an honourable man.
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slon
Non-Aligned
Posts: 13,326
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Post by slon on Oct 19, 2018 10:45:57 GMT
Does devaluation solve all economic problems?
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john07
Labour & Co-operative
Posts: 15,788
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Post by john07 on Oct 26, 2018 12:12:56 GMT
Does devaluation solve all economic problems? It would have solved the problem of a grossly overvalued Sterling when fixed exchange rates operated. The danger with devaluation is that the higher prices of imported goods implicit with devaluation could 'import' inflation. If inflation is running higher than that in the main trading partners you will soon be back to square one and further devaluation would be required. |
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slon
Non-Aligned
Posts: 13,326
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Post by slon on Oct 26, 2018 17:02:47 GMT
Does devaluation solve all economic problems? It would have solved the problem of a grossly overvalued Sterling when fixed exchange rates operated. The danger with devaluation is that the higher prices of imported goods implicit with devaluation could 'import' inflation. If inflation is running higher than that in the main trading partners you will soon be back to square one and further devaluation would be required. Was the problem grossly overvalued Sterling ... or complacent and increasingly non-competative industry?
Nice easy answer that the World did not want to buy British goods because we so much more expensive. Everyone knew the the foreigners worked hundreds of hours a week for a bowl of rice or half a sausage.
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