Britain: The Agony of the Pound

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Most economists believe that Britain's final economic salvation lies in a larger market. In devaluing, Britain has fulfilled one of Charles de Gaulle's—and the Common Market Commission's—two stated requirements for entry. The other is the gradual dropping of sterling as a reserve currency, which Wilson's emissaries to Europe have already agreed to consider. Devaluation thus constitutes a major step toward meeting Europe's conditions. The real question, though, is whether Harold Wilson will follow it up with the toughness and tenacity that will be required if Britain is really to reap any lasting benefit from last week's disturbing step.

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