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The British Economy - Essay Example
The devaluation of sterling's in 1949 and 1967 are significant to the British Economic History. The world biggest imperialist power Britain was dead set against sterling's role from early age. Its conscious comings and goings were made to encourage the use of the sterling all over the empire as a way of simplifying transactions…
Eichengreen, B. (1995) stated that Britain's sterling devaluations in 1949 were a continuation of the effect of World War-II. After the war both Britain and Germany imposed exchange control. In 1949 Britain joined the NATO1, when it was a founding member of the UN. The most important significance of the year in world politics was rise of the CPG2 in China. Chinese Communist Leader Mao Zedong and Soviet President Joseph Stalin signed a Sino-Soviet Treaty that endow with economic and military aid from the Soviet Union to the new state of communist. Simultaneously the Chinese Nationalists established a new regime in the island of Taiwan after defeated on mainland by the military forces of Communists. Britain was concerned in this region foe colonial economic interest with Hong Kong. 3
Clement, P. (2006) mentioned that the Labour Government was in the power at the period of devaluations in 1949 and endorsed a political agenda entrenched in collectivism such as nationalisation of industries and state tracked economy. Both wars had learnt the lesson of the potential benefits of greater state attachment. The post war economy emphasise the future direction and was by the Conservatives. Nevertheless, the initiatives of nationalisation were not successes due to lack of more degree of understandings the economic management emerged. ...