Sponsor Message:
Non Aviation Forum
My Starred Topics | Profile | New Topic | Forum Index | Help | Search 
British Pound: Can Someone Explain It To Me?  
User currently offlineDerico From Argentina, joined Dec 1999, 4277 posts, RR: 12
Posted (8 years 3 months 1 week 4 days 15 hours ago) and read 2355 times:

I read a brief article on the history of this currency, and I was stunned to learn how many changes it has suffered. I always had the impression it was an extremely very reliable currency (well, comparatively speaking it has been as it has not been 'changed' or 'phased out' like currencies in other countries).

Yet according to this article it has suffered repeated crisis and devaluations since WWII, in the late 40s, in the 60s, 70s, 80s, and even in 1992 (which I didn't know), apparently involving George Soros, which ended forcing the country to 'devalue' the currency. In many of those instances, specially in the 60s and 70s, Britain as did many other European countries at the time, asked the IMF for bailout loans... Now I didn't know about that and thought it was really funny, since many in Europe use IMF bailouts as indications of a country's 'thirdworldlyness'  Smile

Still as I understood the piece I read, before the 1970s, it was not decimalized, but rather it used a another system, but I don't think it was fractionalization either (1/4, 1/8, and the like).

Since there are tons of britties here, can anyone explain to me HOW one 'counted' british money prior to decimalization?? And to Europeans in general, what was the European Currency Unit??

If there were pegs of currencies throughout the post-WWII, how did the Italian Lira devalue so much, or to a lesser level the franc or peseta?


My internet was not shut down, the internet has shut me down
37 replies: All unread, showing first 25:
 
User currently offlineSkySurfer From United Kingdom, joined Sep 2004, 1136 posts, RR: 13
Reply 1, posted (8 years 3 months 1 week 4 days 15 hours ago) and read 2341 times:

http://website.lineone.net/~davghalgh/money.html

Hope this helps

Cheers



In the dark you can't see ugly, but you can feel fat
User currently offlineJafa39 From , joined Dec 1969, posts, RR:
Reply 2, posted (8 years 3 months 1 week 4 days 15 hours ago) and read 2340 times:

Quoting Derico (Thread starter):
HOW one 'counted' british money prior to decimalization??

It worked in funny ways, there were 2 farthings to a halfpenny, two halfpennies to a penny (d'uh!) and 12 pennies to a shilling, there were 20 shillings to a pound and 1 pound and 1 shilling to a guinea. Pounds were also known as "Quids" and shillings were known as "Bobs"

Now do you see why it was decimalised?

Quoting Derico (Thread starter):
what was the European Currency Unit??

A fictitious currency by which all euro nations could plot an exchange rate to see if their currency could be brought within a set of parameters via the "exchange rate mechanism" it was an exercise desinged to see if a single european currency would work for everyone, it may well have been the reason for the latest devaluation of the pound but I'm not totally sure about this as the whole thing was done to death on the news and got very tedious.

Jafa(ex-pom)39

[Edited 2006-01-10 03:05:03]

User currently offlineKlaus From Germany, joined Jul 2001, 21353 posts, RR: 54
Reply 3, posted (8 years 3 months 1 week 4 days 15 hours ago) and read 2337 times:

The ECU was simply the initial, somewhat abstract name of what has now become the €uro. European Currency Unit - Wikipedia, the free encyclopedia

Devaluations generally happened when the pegs "didn't hold", when the strains between economic reality and the nominal pegged value became too large to bear (at least in the view of the respective politicians and/or central bankers).

Let's see if we can get this over with in a halfway civilized way, even though several red buttons have already been triggered in the thread starter...! Big grin


User currently offlineBanco From United Kingdom, joined Oct 2001, 14752 posts, RR: 54
Reply 4, posted (8 years 3 months 1 week 4 days 8 hours ago) and read 2266 times:

Quoting Derico (Thread starter):
Yet according to this article it has suffered repeated crisis and devaluations since WWII, in the late 40s, in the 60s, 70s, 80s, and even in 1992 (which I didn't know), apparently involving George Soros, which ended forcing the country to 'devalue' the currency. In many of those instances, specially in the 60s and 70s, Britain as did many other European countries at the time, asked the IMF for bailout loans... Now I didn't know about that and thought it was really funny, since many in Europe use IMF bailouts as indications of a country's 'thirdworldlyness'

It's in various parts. The British economy was utterly destroyed by the Second World War, and unlike most of the rest of the continent, did not initially receive huge cash injections from the US. As a result, Britain very quickly fell behind the economies of the rest of the continent, and by 1949 a devaluation was clearly needed.

In the decades afterwards, a combination of the bad post-war start, fractious industrial relations and poor economic management worsened the economic position, and in those days of fixed exchange rates, successive devaluations followed.

The IMF loan was probably the nadir of British economic fortunes (it's been on a relative upturn ever since) and the picture of a British Chancellor "cap in hand" to the IMF remained a powerful political image for many years afterwards.

The last "devaluation" mentioned, in 1992, wasn't really quite the same. The Pound had been floating against the international currency markets since 1973, but the decision was taken to join the Exchange Rate Mechanism of the European Monetary System in the late 1980's. This meant that currency only floated within a set band against each other, and was meant to provide exchange rate stability. The problems here were several:

The pound tended to mirror the US dollar more closely than it did individual European currencies (changed slightly with the advent of the Euro) and so the level of movement against them was much more volatile than was thecase with moist European currencies. The other major problem was that the rate at which the UK went in was much too high, and so there was scope to put Sterling under pressure.

The UK was, to all intents and purposes, kicked out of the ERM by speculator pressure. It was a bloody stupid thing to do to join it in the first place, and the fact that Britain has done very nicely thank you by returning to its position as a floating currency is strong evidence of the folly of joining in the first place.



She's as nervous as a very small nun at a penguin shoot.
User currently offlineN1120A From United States of America, joined Dec 2003, 26196 posts, RR: 76
Reply 5, posted (8 years 3 months 1 week 4 days 8 hours ago) and read 2253 times:

Quoting Derico (Thread starter):
And to Europeans in general, what was the European Currency Unit??

The ECU is what became the Euro. Originally it was thought that the unit would be called the Ecu (pronounced the eh-koo) which is the name of a rather old French currency unit but the protest of other European Community members changed it to the Euro

Quoting Banco (Reply 4):
The UK was, to all intents and purposes, kicked out of the ERM by speculator pressure. It was a bloody stupid thing to do to join it in the first place, and the fact that Britain has done very nicely thank you by returning to its position as a floating currency is strong evidence of the folly of joining in the first place.

Actually, the main issue with the Pound and the peg to the Mark was the one that also caused the advent of the Euro. Irresponsible monetary policy by the Germany CDU government



Mangeons les French fries, mais surtout pratiquons avec fierte le French kiss
User currently offlineME AVN FAN From Switzerland, joined May 2002, 13920 posts, RR: 25
Reply 6, posted (8 years 3 months 1 week 4 days 8 hours ago) and read 2248 times:

Let's see. One Pound had 20 Shilling and each Shilling 12 Pennies. AFTER the decimalisation, the 1 Shilling piece was 5 Pence and the 2 Shilling piece was 10 Pence. The 6-pence piece was worth 2,5 Pence only. The change was done by the government of Edward Heath in about 1969/70 and already was fully in place when I visited London for the first time in autumn 1971 .
-
And in 1971/72 those folks in the city still had those "Melon-Hats" on their heads !


User currently offlineBanco From United Kingdom, joined Oct 2001, 14752 posts, RR: 54
Reply 7, posted (8 years 3 months 1 week 4 days 8 hours ago) and read 2240 times:

Quoting N1120A (Reply 5):
Actually, the main issue with the Pound and the peg to the Mark was the one that also caused the advent of the Euro. Irresponsible monetary policy by the Germany CDU government

It depends whether you believe they have a responsibility to the other nations or not, doesn't it?  Wink



She's as nervous as a very small nun at a penguin shoot.
User currently offlineScbriml From United Kingdom, joined Jul 2003, 12040 posts, RR: 47
Reply 8, posted (8 years 3 months 1 week 4 days 8 hours ago) and read 2238 times:
Support Airliners.net - become a First Class Member!

Quoting ME AVN FAN (Reply 6):
And in 1971/72 those folks in the city still had those "Melon-Hats" on their heads !

Do you mean a bowler hat?  wink 

They would have also had a rolled up umbrella. In a few years they would be using mobile phones the size of a brick with an attached battery the size of a car battery.

 old 



Hey AA, the 1960s called. They want their planes back!
User currently offlineN1120A From United States of America, joined Dec 2003, 26196 posts, RR: 76
Reply 9, posted (8 years 3 months 1 week 4 days 8 hours ago) and read 2237 times:

Quoting Banco (Reply 7):
It depends whether you believe they have a responsibility to the other nations or not, doesn't it?

When you are bound by treaty, yes, you do have responsibility to other nations. In accepting the position as the peg currency, they gave up monetary policy autonomy. Kohl's actions that led the Bundesbank to shoot up interest rates in an attempt to keep Germany from going bankrupt were absolutely irresponsible and wrecked the entire European currency regime.



Mangeons les French fries, mais surtout pratiquons avec fierte le French kiss
User currently offlineBanco From United Kingdom, joined Oct 2001, 14752 posts, RR: 54
Reply 10, posted (8 years 3 months 1 week 4 days 8 hours ago) and read 2231 times:

Quoting N1120A (Reply 9):
When you are bound by treaty, yes, you do have responsibility to other nations. In accepting the position as the peg currency, they gave up monetary policy autonomy. Kohl's actions that led the Bundesbank to shoot up interest rates in an attempt to keep Germany from going bankrupt were absolutely irresponsible and wrecked the entire European currency regime.

I'm not arguing with you. But when the same point was made by the British government at the time, rather forcefully, the Germans disagreed.

As it turned out, they did us a pretty big favour.



She's as nervous as a very small nun at a penguin shoot.
User currently offlineGkirk From UK - Scotland, joined Jun 2000, 24815 posts, RR: 56
Reply 11, posted (8 years 3 months 1 week 4 days 8 hours ago) and read 2225 times:

The best thing about the Pound?




It's not the Euro  box  fight 



When you hear the noise of the Tartan Army Boys, we'll be coming down the road!
User currently offlineSebolino From France, joined May 2001, 3675 posts, RR: 4
Reply 12, posted (8 years 3 months 1 week 4 days 7 hours ago) and read 2208 times:

Quoting Gkirk (Reply 11):
The best thing about the Pound?


It's not the Euro

Well if it is the best thing, it's rather slim !


User currently offlineRacko From Germany, joined Nov 2001, 4856 posts, RR: 20
Reply 13, posted (8 years 3 months 1 week 4 days 6 hours ago) and read 2188 times:

Quoting Banco (Reply 10):
As it turned out, they did us a pretty big favour.

We're so nice to you and you still don't like us  Sad


User currently offlineCornish From United Kingdom, joined Feb 2005, 8187 posts, RR: 54
Reply 14, posted (8 years 3 months 1 week 4 days 6 hours ago) and read 2180 times:

Quoting Racko (Reply 13):
We're so nice to you and you still don't like us

We like you more than the French if that's any consolation Big grin



Just when I thought I could see light at the end of the tunnel, it was some B*****d with a torch bringing me more work
User currently offlineBanco From United Kingdom, joined Oct 2001, 14752 posts, RR: 54
Reply 15, posted (8 years 3 months 1 week 4 days 6 hours ago) and read 2176 times:

Quoting Cornish (Reply 14):
We like you more than the French if that's any consolation

I wouldn't think so. We like bird 'flu more than the French. Big grin



She's as nervous as a very small nun at a penguin shoot.
User currently offlineClassicLover From Ireland, joined Mar 2004, 4601 posts, RR: 24
Reply 16, posted (8 years 3 months 1 week 4 days 5 hours ago) and read 2145 times:

The pound is a pain... only because the Australian dollar is usually only worth about 40p. Expensive London becomes unbelievably expensive when converted into our poor Aussie dollars.

Damn strong currency, the pound  Smile

Trent.



I do quite enjoy a spot of flying - more so when it's not in Economy!
User currently offlineCornish From United Kingdom, joined Feb 2005, 8187 posts, RR: 54
Reply 17, posted (8 years 3 months 1 week 4 days 5 hours ago) and read 2138 times:

Quoting ClassicLover (Reply 16):
The pound is a pain... only because the Australian dollar is usually only worth about 40p. Expensive London becomes unbelievably expensive when converted into our poor Aussie dollars.

Damn strong currency, the pound

That's your problem - works nicely for us when we go away  Wink



Just when I thought I could see light at the end of the tunnel, it was some B*****d with a torch bringing me more work
User currently offlineME AVN FAN From Switzerland, joined May 2002, 13920 posts, RR: 25
Reply 18, posted (8 years 3 months 1 week 4 days 5 hours ago) and read 2136 times:

Quoting Scbriml (Reply 8):
Do you mean a bowler hat? wink
yes, of course, but I could NOT remember this word --- as bowling to me has a different meaning !

They would have also had a rolled up umbrella.

sure, even at good weather in sunshine --- and of course in full black !

And the whole attire did NOT hinder them from eating some smelly fish and chips for lunch .....................


User currently offlineJush From Germany, joined Apr 2005, 1636 posts, RR: 3
Reply 19, posted (8 years 3 months 1 week 4 days 5 hours ago) and read 2122 times:

Quoting Jafa39 (Reply 2):
Pounds were also known as "Quids"

pounds are still calles quid.... at least in Somerset.

Regds
jush



There is one problem with airbus. Though their products are engineering marvels they lack passion, completely.
User currently offlineClassicLover From Ireland, joined Mar 2004, 4601 posts, RR: 24
Reply 20, posted (8 years 3 months 1 week 4 days 4 hours ago) and read 2107 times:

Quoting Cornish (Reply 17):
That's your problem - works nicely for us when we go away

lol... oh, I know... time to get work in the UK methinks  Smile

Trent.



I do quite enjoy a spot of flying - more so when it's not in Economy!
User currently offlineBlackandWhite From United Kingdom, joined Aug 2003, 113 posts, RR: 0
Reply 21, posted (8 years 3 months 1 week 4 days 2 hours ago) and read 2068 times:

it may interest you to know that banks in Scotland such as the Royal Bank of Scotland and the Clydesdale Bank issue banknotes there are still in circulation £1 notes although now uncommon , as well a £5 , £10, £20 technically these notes are classed as Bills of exchange they are valid basically only in Scotland , but can be exchanged for sterling notes at any bank in england.
Similiarly the Bank Of Northern Ireland issues its own notes again only valid in N Ireland


User currently offlineDougloid From , joined Dec 1969, posts, RR:
Reply 22, posted (8 years 3 months 1 week 4 days 2 hours ago) and read 2039 times:

Quoting Banco (Reply 15):
Quoting Cornish (Reply 14):
We like you more than the French if that's any consolation

I wouldn't think so. We like bird 'flu more than the French.

You folks in the Islands are hilarious. You really ought to get out more. The only time you can get your shit together is if it's a Yankee slugfest.

Which is cool. That's OK. We won't mention Yorktown or New Orleans.

Just kidding, all in good fun.

Quoting ME AVN FAN (Reply 18):
And the whole attire did NOT hinder them from eating some smelly fish and chips for lunch .....................

Sod off, if I may be permitted to borrow a British country witticism.


User currently offlineJush From Germany, joined Apr 2005, 1636 posts, RR: 3
Reply 23, posted (8 years 3 months 1 week 4 days 1 hour ago) and read 2025 times:

Quoting N1120A (Reply 5):
The ECU is what became the Euro. Originally it was thought that the unit would be called the Ecu (pronounced the eh-koo) which is the name of a rather old French currency unit but the protest of other European Community members changed it to the Euro

I thought it is pronounced ehhh-k���h or was.
Anyway anyone here remember the EURO game published by the EU governments where you had to play in and around europe travel to every capital in Europe and you had to answer country-special questions.

This game was awesome and was calle Europa (Europe) in Germany.

Regds
jush

EDIT: i couldn't find the game again not even via google. If any has this game.
Pls send it to meeeeee..



There is one problem with airbus. Though their products are engineering marvels they lack passion, completely.
User currently offlineME AVN FAN From Switzerland, joined May 2002, 13920 posts, RR: 25
Reply 24, posted (8 years 3 months 1 week 4 days ago) and read 2000 times:

Quoting Dougloid (Reply 22):
permitted to borrow a British country witticism

sounds more like an Iowa colloquialism ...............


25 ME AVN FAN : when I in the 80ies visited Edinburgh and Glasgow, there were banknotes of the Bank of Scotland, the Royal Bank of Scotland and the Clydesdale Bank.
26 Dougloid : Nope. We're far more direct than that here but because I didn't like being in the doghouse for a week the last time I shall hold my peace and let you
27 Post contains images Gkirk : No, The Bank of Scotland, Royal Bank of Scotland and the Clydesdale Bank still issue their own notes. Got to love the £1 notes only found in Scotlan
28 Post contains images Banco : They were actually withdrawn from circulation 30 years ago, but the tight-fisted buggers won't let go of them...
29 ME AVN FAN : you were in the DOGHOUSE ??? I do NOT wonder about that expression in the posting before but I DO wonder about what trouble you felt "last time" a bi
30 Derico : How come? Shouldn't Britain have been showered with reconstruction money since they bore the brunt of the resistance to Germany?? The current British
31 Banco : Because the money was intended to re-construct the defeated nations of Europe rather than the victors. The US viewed Britain as a rival, not a suppli
32 Dougloid : Well, there's a fella on the civil aviation board who gets very upset when someone uses his name in a post, even if it's in jest or fun...he whinges
33 Post contains images Jafa39 : Now there's and image to conjure with! Oh there was a pattern alright, a very English pattern!! Oddly enough when we went decimal, some old people ju
34 LTBEWR : As far as I know, the USA since several years after it's creation has always had a decimial money system, although Federal bills and coins were not de
35 Jush : That was a really nice assesment of that situation that days. I'm glad that you're already in my RR list. It's really kinda strange if you think that
36 Klaus : When you leave ideology aside and are looking for the longer term, things look a little differently. The Pound is still a rather small currency and t
37 Dougloid : Not really. My mom who is 85 has a bit of money put by and she sent me her last will and testament with the explanation "You're not getting any of th
Top Of Page
Forum Index

This topic is archived and can not be replied to any more.

Printer friendly format

Similar topics:More similar topics...
Can Anyone Explain Curling To Me? posted Sun Feb 24 2002 05:54:12 by NormalSpeed
Can Someone Explain Donnie Darko To Me? posted Thu Dec 1 2005 07:35:59 by Newark777
Can Someone Explain The MLB To Me Please? posted Wed Aug 17 2005 23:25:28 by Sabena332
Someone Please Explain Superdelegates To Me posted Wed Jan 28 2004 03:43:56 by N6376m
Can Someone Explain The 17.5% VAT? posted Sat Apr 29 2006 02:11:31 by Cadet57
Can Someone Explain The Teletubbies? posted Mon Aug 9 2004 07:30:44 by Luisca
Can Someone Explain The Point Of A Strip Club posted Mon Jul 12 2004 15:22:13 by Captoveur
Can Someone Explain Cricket Please? posted Tue Mar 16 2004 11:08:01 by UTA_flyingHIGH
Melatonin, Can Someone Recommend It? posted Thu Jun 12 2003 19:27:59 by Sabena332
Women Can Someone Explain Them? posted Fri Jun 6 2003 00:23:20 by Bmi330