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Sterling in crisis, 1964–1967

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  • BORDO, MICHAEL D.
  • MACDONALD, RONALD
  • OLIVER, MICHAEL J.

Abstract

We provide the first econometric study of foreign exchange market intervention for the UK during the sterling crises from 1964 from 1967. We use daily data on spot and forward dollar/sterling exchange rates and reserve movements which allows a more precise description of the loss of credibility during four currency crises. Reserve losses are consistent with exchange rate crises. External assistance given to sterling throughout this period shored up the reserves and allowed the sterling peg to be maintained.

Suggested Citation

  • Bordo, Michael D. & Macdonald, Ronald & Oliver, Michael J., 2009. "Sterling in crisis, 1964–1967," European Review of Economic History, Cambridge University Press, vol. 13(3), pages 437-459, December.
    • Handle: RePEc:cup:ereveh:v:13:y:2009:i:03:p:437-459_99
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    Cited by:

    1. David, Géraldine & Li, Yuexin & Oosterlinck, Kim & Renneboog, Luc, 2021. "Art in Times of Crisis," Other publications TiSEM 34925083-7378-4691-ba63-6, Tilburg University, School of Economics and Management.
    2. Leontyeva, Elena (Леонтьева, Елена) & Narkevich, Sergey (Наркевич, Сергей), 2015. "Optimal Practice of Creation and Management of Gold Reserves [Оптимальная Практика Создания И Управления Золотовалютными Резервами]," Published Papers mak12, Russian Presidential Academy of National Economy and Public Administration.
    3. Bordo, Michael & Monnet, Eric & Naef, Alain, 2019. "The Gold Pool (1961–1968) and the Fall of the Bretton Woods System: Lessons for Central Bank Cooperation," The Journal of Economic History, Cambridge University Press, vol. 79(4), pages 1027-1059, December.
    4. Rockoff, Hugh & White, Eugene N., 2012. "Monetary Regimes and Policy on a Global Scale: The Oeuvre of Michael D. Bordo," MPRA Paper 49672, University Library of Munich, Germany, revised May 2013.
    5. Oosterlinck, Kim & Accominotti, Olivier & BRIERE, Marie & Burietz, Aurore & Szafarz, Ariane, 2020. "Did Globalization Kill Contagion?," CEPR Discussion Papers 14395, C.E.P.R. Discussion Papers.
    6. Scharpf, Fritz W., 2018. "International monetary regimes and the German model," MPIfG Discussion Paper 18/1, Max Planck Institute for the Study of Societies.
    7. Li, Yuexin, 2021. "Pricing art: Returns, trust, and crises," Other publications TiSEM 8832c172-83dd-4ed9-8215-0, Tilburg University, School of Economics and Management.

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    More about this item

    JEL classification:

    • N1 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations
    • N14 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: 1913-
    • N2 - Economic History - - Financial Markets and Institutions

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