ABSTRACT
British history since the war has been marked by a long series of balance of payments crises, culminating in the crisis of 1976 when it was necessary to turn to the IMF for a large loan on terms acceptable to the IMF. Thanks largely to North Sea oil, the series of crises has been interrupted for nearly a decade and a half. But with a deficit that far outdistances all previous deficits we may yet see a resumption of the familiar pattern. If so it may be useful to look back to the crisis of 1976 to see what lessons can be drawn from that experience.
