ABSTRACT
These events took place in widely different circumstances: in 1931, in conditions of slump and world depression; in 1949, and to a lesser extent in 1967, in conditions of boom and full employment; in 1931, when the current account was in heavy deficit; in 1949, when it was more or less in balance. On all three occasions the government acted under pressure and late in the day. The parity was defended to the last, and devaluation was regarded as a catastrophe. Even in 1972, when the pound was allowed to float down by 10 per cent, the decision was a reluctant response to heavy pressure.
