Managed decline? Muddling through with the sterling (dis)agreements, 1968-74

Alan de Bromhead, David P. Jordan, Francis Kennedy and Jack Seddon

No 23-09, QUCEH Working Paper Series from Queen's University Belfast, Queen's University Centre for Economic History

Abstract: How do policy makers manage the decline of an international currency? This paper examines British policy towards the pound sterling's international role in the years 1968-74. Using previously uncited government archival sources, we revisit the view that the 'sterling agreements' of 1968-74, bilateral contracts made between the UK and governments holding sterling, formed a successful paradigm shift in British policy, towards deliberately managing sterling's international 'retirement'. Our research indicates that there was no settled consensus or strategic direction to British policy in this period, a case of 'muddling through'. Indeed, when feasible options presented themselves, British officials sought to maximise, not reduce, international sterling holdings.

Keywords: Sterling Area Agreements; international currency; sterling policy; disintegration (search for similar items in EconPapers)
JEL-codes: F02 F22 F33 N10 (search for similar items in EconPapers)
Date: 2023
New Economics Papers: this item is included in nep-his, nep-hpe and nep-mon
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:qucehw:202309

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