ABSTRACT
The abandonment of the Gold Standard by Great Britain meant the end, for the time being at any rate, of the international monetary system. The chief centre of international finance was not paying twenty shillings in the pound. It is important not to under-estimate the effects of all this on the absolute level of confidence throughout the world. To relieve the overvaluation of the pound and to get into international equilibrium it was necessary either to reduce costs or lower the exchange. The whole framework of international trade has undergone a continuous earthquake. As the international uncertainty continued, gold hoarding became more and more prevalent. The abandonment of the Gold Standard by Great Britain was attended by no internal disaster. In foreign eyes the abandonment of the Gold Standard by Great Britain was the equivalent of default. The opportunity for a restoration of international stability under conditions of maximum advantage for the ossified cost structure of Great Britain was rejected.
