The powerful pound. (British monetary policy)(Editorial)

Economist (US), The, July, 1997

The British pound is as strong as it has been in five years on the foreign exchange, and there is sentiment that the nation's monetary policy should not do anything to undermine its strength. It is more important however that the Bank of England make inflation control its top priority.

IT IS almost as diverting to businessmen and to economic pundits as a racy photograph of the Princess of Wales is to a daily newspaper. Indeed, the sight of the pound clambering past an exchange rate of DM3.00, hovering at times close to $1.70, and on a trade-weighted measure strengthening by more than 24% in the past 12 months, is threatening to dominate discussion of economic policy in Britain. Naturally, exporters are squealing that they are being priced out of their markets. More...

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