Overvalued Pounds Holds back the British Economy
In the article “Brown and King’s silence over Pound is Defending” the writer Matthew Lynn concerns about the overvalued pound; He believes that it resists U.K to join the single European Currency and hurts the British trade with other countries.
At the beginning of the December, the pound reached the $1.98, the highest exchange rate ever since 1992 while many economists expect it rises even more that it will be over $2.00 soon. As an open economy which depends on the international trade heavily, continual rising of the pound will hurt the British economy. However, the British politicians who still have the wound of the pound’s devaluation against dollars in the 1960s hesitate to mention about the problem of the overvalued pounds.
“The rise of the pound against the dollar is the biggest thing to happen to the UK economy this year - and yet it is the one subject the men in charge refuse to talk about.”
In the article “Brown and King’s silence over Pound is Defending” the writer Matthew Lynn concerns about the overvalued pound; He believes that it resists U.K to join the single European Currency and hurts the British trade with other countries.
At the beginning of the December, the pound reached the $1.98, the highest exchange rate ever since 1992 while many economists expect it rises even more that it will be over $2.00 soon. As an open economy which depends on the international trade heavily, continual rising of the pound will hurt the British economy. However, the British politicians who still have the wound of the pound’s devaluation against dollars in the 1960s hesitate to mention about the problem of the overvalued pounds.
“The rise of the pound against the dollar is the biggest thing to happen to the UK economy this year - and yet it is the one subject the men in charge refuse to talk about.”
(The above graph shows the change of US Dollar to British Pound past two years. You can see better if you click the graph)
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