Good-bye, Great Britain: The 1976 IMF Crisis

Pirmais vāks
In March 1976 the value of the British pound began to slide. The slide turned into a rout and triggered an economic and political trauma. By September confidence in the pound had collapsed. In April 1975 the Wall Street Journal had run the headline 'Goodbye, Great Britain,' advising investors to get out of sterling. Now the British Labour government under its new Prime Minister James Callaghan was forced to seek help from the International Monetary Fund, a familiar option for Third World countries but highly unusual for a developed western economy. This expert new study uncovers the roots of the most searing economic crisis of postwar Britain.
The weakness and instability of the British economy in the mid-1970s, the consequence in part of the 1973 rise in oil prices, raised international alarm. The US government in particular feared economic crisis would drive Britain into a left-wing siege economy, endangering NATO and the EEC. Anticipating the danger, the US Treasury set out to force Britain to make major domestic policy changes. The sterling crisis provided the opportunity. The IMF provided the weapon.
Arriving in London in November 1976, the IMF mission announced that the price for the loan included deep cuts in public expenditure. The consequent political crisis was fought out in private and in public, amongst members of the British Cabinet, the Labour Party, the Treasury and the Bank of England. It involved the US President, Treasury and State Department, the Federal Reserve, the German Chancellor and the Bundesbank.
Burk and Cairncross uncover the efforts of the Labour government to escape IMF conditions. They also examine the political agenda, the loss of economic control, the rise of monetarist ideas and the change in the climate of opinion. Juxtaposing gripping narrative with expert analysis, the book provides surprising answers to critical questions and reveals how the breakdown of the postwar consensus on macro-economic management paved the way for the triumph of Thatcherism.

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This is not a particularly easy book to read and I suppose that it mostly has an appeal for people who (like this reviewer) lived through the events which the authors recount in great detail ... Lasīt pilnu pārskatu

Saturs

Whats Past is Prologue
3
MarchSeptember 1976
20
Sterlingdollar exchange rate 215 March 1976
32
Sterlingdollar exchange rate JulyDecember 1976
56
OctoberDecember 1976
59
Getting Rid of the Sterling Balances
111
The Sterling Balances Official and Private 197679
114
The Movement of Opinion
129
Public sector borrowing requirement and financial deficit 197179
182
Public expenditure 197277
189
Changes in public expenditure unemployment and national income 197377
195
Changes in demand 197377
196
Increase in incomes prices and money 197178
199
Factors contributing to price inflation
201
The money supply and borrowing requirement 197577
207
Comparisons and Conclusions
215

Inflation and savings 197076
148
Inflation and the burden of public debt
154
The Balance of Payments
163
Balance of payments on current account
169
The movement of funds 197178
171
Changes in exchange reserves of sterling of central monetary institutions 197476
175
The movement of funds 197577
176
Domestic Economic Policy
179
Percentage increase in wages and prices in five leading countries 197476
221
Changes in GDP prices and public expenditure in ten industrial countries 197278
223
Budget balance and balance of payments in ten countries 197476
224
Appendix The Letter of Intent
229
Notes
237
Bibliography
254
Index
261
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