The collapse of the Bretton Woods system in the early 1970s resulted in a transition to fluctuating rather than fixed currency system. This brought sterling into the turmoil of the world currency markets, and by the end of the 1970s, sterling had quietly ended its role as an international currency. Sterling-dollar diplomacy collapsed, bringing to an end what had hitherto been considered Britain's prime relationship.
Britain and European Monetary Cooperation, 1964-1979 provides a unique perspective on these events, shedding light on the complexities of the historical context of British monetary diplomacy and exploring the country's attempt at a European approach to sterling in the 1960s and '70s. The book describes the political and economic approach Britain took at the turn of the 1970s, and explains how the country became restricted by the burden of the sterling balances. In this book, the author illustrates how these developments offered opportunity for both cooperation and conflict in the light of monetary diplomacy. He demonstrates how Britain's struggle to achieve exchange rate stability, twinned with controversy over European Economic Community membership, finally prompted serious reconsideration of economic policy-making.
This book challenges the commonly-held perception of the decline of sterling, and explains that, although Britain's attempt at a European approach failed, the decline of the currency was more complicated than a 'managed decline'.
About the Author
Kiyoshi Hirowatari teaches History of International Trade, International Finance and Globalization at Hirao School of Management, Konan University, Japan. He studied at both Kyoto and Cambridge Universities, obtaining a PhD in History from Cambridge University. He is a Research Associate at the Centre for Financial History at Darwin College, Cambridge and a member of the Economic and Social History University academic staff. He is a member of the Socio-Economic History Society of Japan, and has held professional positions at the Bank of Tokyo. Kiyoshi Hirowatari's research interests lie in monetary diplomacy between Britain and Europe.
Table of ContentsIntroduction
PART I: THE CONSERVATIVES AND EUROPEAN MONETARY COOPERATION
1. The Conservatives and European Monetary Cooperation
2. The Conservatives and Monetary Sovereignty
3. The Heath Government and External Economic Policy
PART II: LABOUR AND EUROPEAN MONETARY COOPERATION: LABOUR AND STERLING
5. Harold Wilson, the 1964?66 Sterling Crisis and ' 'the Second Try ' '
6. The European Approach versus Sterling?Dollar Diplomacy
7. The 1976 IMF Crisis and its Aftermath
Appendix I Central Bank Cooperation (1963?1976)
Appendix II Short-term Aid Facilities 1964?1967
Appendix III Comparison between the 1967 Devaluation Crisis and the 1976 IMF Crisis
List of Names