MONEY: A Game of Chicken over Sterling

The story named no source and was instantly and vehemently denied by everybody involved. Nonetheless, it caused the most violent spasm yet in the seemingly endless agonies of the pound. The story, front-paged on Oct. 24 by London's Sunday Times, implied that the U.S. Government and the International Monetary Fund would insist that the British government let the pound sink to $1.50 against the U.S. dollar as a condition for a desperately needed $3.9 billion IMF loan to Britain. U.S. Secretary of the Treasury William Simon, IMF officials and British Chancellor of...