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Document Type

Article

Abstract

The old saying "The sun never sets on the British empire;' indicated an optimism on the part of the British people. It's a pity that former optimism is now missing in the British currency. Since the early 1980s, the British pound has been trading mostly on the downside with some wide swings in its value. This volatility in sterling seems to have been heightened by the 1979 discovery of oil in the North Sea, mostly because currency traders felt Britain's economy was tied to the price of oil. Perhaps during the late 1970s and early 1980s, oil's price may have dictated the value of the British pound. According to Stevenson and Jennings (1984), the strength or weakness of the British economy is reflected in the value of the British pound. Therefore, the pound should be reflecting oil's diminished role in the economy, but it is not.

Publication Date

1987

Journal Title

Draftings In

Volume

2

Issue

4

First Page

29

Last Page

35

Comments

This issue is also considered v.3 of the initial publication series of Major Themes in Economics.

Copyright

© 1987 by the Board of Student Publications, University of Northern Iowa

Language

en

File Format

application/pdf

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