After maturity comes decline – the end that history suggests must come to every international currency. At this stage, the challenge is how best to live with fading eminence. Again the choices are three: resistance, reinforcement, or relaxation. Policy makers may actively strive to resist abandonment of their currency, hoping to preserve at least some of the benefits of international use. They can seek to reinforce the process of decline in hopes of managing a “soft landing” for the currency. Or they may just leave it to market actors and foreign central banks to decide matters. The prime example of currency decline in recent history is Britain’s pound sterling, which over the last century has fallen a long way from its once exalted status at the peak of the global monetary hierarchy. Once more, the importance of geopolitical ambition is highlighted. To cope with the challenge of decline, London’s currency statecraft gradually evolved from resistance to reinforcement. After struggling mightily to sustain a role for the pound to commensurate with Britain’s historical role as a great imperial power, strategy eventually moved decisively from opposition to accommodation, once British policy elites began to accept their nation’s diminished place in the world.
University Press Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.
If you think you should have access to this title, please contact your librarian.
To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us .