The Review of Economics and Statistics Vol. 35 No. 1 1953
Leads and Lags in Sterling Payments
Abstract
M ONTHLY statistics of the sterling area's trade and payments position with Western Europe and North America indicate that a substantial volume of short-term speculation in sterling has taken place since the end of I948 and that inward as well as outward movements of capital have occurred. The pressure against sterling resulting from this speculation has been recognized as a significant factor contributing to the I949 devaluation as well as to the loss of reserves incurred in I95I-52. The short-term flows of funds into and out of sterling, which have been induced principally by the expectation of changes in exchange rates, have been of a disequilibrating character. These transactions have taken the form of leads and lags in sterling payments by merchants in connection with their normal trading operations: hence, this speculation has been effected within the framework of rigorous controls over exchange and foreign trade transactions which have blocked short-term money movements of the pre-i939 character.
- DOI
- 10.2307/1925732
- Volume
- 35
- Issue
- 1
- Pages
- 75
- Sources
- openalex crossref