Quote:
Originally Posted by Stevie25
I will try to answer my own question:
1£ purchased 1.85$ in 2008
1£ purchases 1.24$ in June 2022
Barrel of Oil is priced in $, hence price of petrol
What could possibly has caused this sharp decline in the £ ??
Open to suggestions !
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You raise a very important point. All the G20 countries and others have been depreciating their currencies for years. When the monetary policy of an individual country gets totally 'out of whack' with other baskets, that currency gets sold off and we see a Zimbabwe or a Venezuela. Most governments excel at not balancing their books like we plebs have to. They over promise to get elected in democracies, rob Peters to get the cash to pay pay Pauls ( their supporters), thus creating capital misallocations on a grand scale and then 'print money' to fill any gaps in public finances. If they try to balance the books, the opposition screams austerity, so the dog and pony show goes on until we arrive where we are now. You can't shut an economy down for two years and print over £440 billion without consequences. If Labour or anyone else achieves a majority at the next election, they'll probably regret it! The macro economic headwinds don't recognise political parties. They just do their thing when Pandora's box has been open long enough.
