The Decline of Sterling: Managing the Retreat of an International Currency, 1945–1992

Cover......Page 1
Frontmatter......Page 2
Contents......Page 8
List of figures......Page 11
List of tables......Page 14
Acknowledgements......Page 16
1 - Introduction......Page 18
Evolution of the international monetary system......Page 24
Britain in the world economy......Page 30
Measuring sterling's international role......Page 38
Summary and outline of the book......Page 44
Part I - Reconstructing the International Monetary System 1945--1959......Page 52
The post-war settlement......Page 54
The 1947 convertibility crisis......Page 77
Devaluation, 1949......Page 85
Conclusions......Page 97
Sterling as a reserve currency......Page 100
Sterling as a trading currency......Page 112
The sterling exchange rate......Page 117
Convertibility on the current account......Page 119
Conclusions......Page 132
Part II - Accelerating the Retreat: Sterling in the 1960s......Page 134
4 - Sterling and European integration......Page 136
Erosion of traditional relationships in the 1960s......Page 138
The first application, 1961--1963......Page 141
The second application, 1967......Page 148
The final battle for accession, 1970--1972......Page 155
Conclusions......Page 168
5 - The 1967 sterling devaluation: relations with the United States and the IMF 1964--1969......Page 172
Devaluation and Anglo-American relations......Page 174
Devaluation and the IMF......Page 202
Conclusions......Page 221
6 - Sterling and the City......Page 223
Measuring sterling as a commercial currency......Page 225
Sterling in banking and finance......Page 229
Capital controls on sterling......Page 232
The eclipse of sterling, 1958--1970......Page 241
Conclusions......Page 255
7 - Multilateral negotiations: sterling and the reform of the international monetary system......Page 258
The G10 negotiations to reform the international monetary system......Page 262
Conclusions: the failure of multilateral negotiations in the 1960s......Page 288
8 - The Sterling Agreements of 1968......Page 290
The origins of the Basle Agreement......Page 291
The second Group Arrangement, 1968......Page 302
Negotiating with the sterling area: July--September 1968......Page 310
Conclusions......Page 329
Part III - Sterling's Final Retreat 1970--1992......Page 332
The Nixon shock and the Smithsonian Agreement, August--December 1971......Page 334
Floating the pound, June 1972......Page 346
The end of Bretton Woods, 1973--1974......Page 358
Renewing the Sterling Agreements......Page 364
Conclusions......Page 373
10 - Years of crisis 1973--1979......Page 374
Sterling and the first oil crisis......Page 375
Sterling and the 1976 IMF crisis......Page 385
The third Group Arrangement, 1976/7......Page 395
Conclusions......Page 410
11 - The aftermath 1980--1992......Page 413
Sterling and North Sea oil......Page 415
Attempts to stabilise core currencies: the Plaza and Louvre Agreements, 1985--7......Page 419
In and out of the Exchange Rate Mechanism: failing to turn sterling into a `European' currency......Page 422
Conclusions......Page 430
12 - Summary and overview......Page 431
Sterling in the international system......Page 434
Sterling and Britain's place in the world......Page 437
The development of British sterling policy......Page 439
Conclusions......Page 443
Index......Page 448