Hot answers tagged currency
I think the loss of British Empire about that time had something to do with that. If you have fiat currency, valued primarily on the perception of your total assets, and you loose a large portion of those assets, you'd better voluntarily adjust your exchange rate or face devaluation due to loss of trust in your currency by other players.
This is a fascinating question. There are short, simple answers: The great devaluation of 1949 - 30% Post war, Britain was heavily indebted to the USA. Despite a soft loan agreement with repayments over fifty years, the pound remained once again under intense pressure In 1949 Stafford Cripps devalued the pound by over 30%, giving a rate of $2.80 ...
These are the basic characteristics of a currency: easy to carry: if you have something to exchange, you should be able to relocate and carry it where ever you wish. If you can do that, it is practical to make it currency. This characteristics formed shells and other smaller stones, shiny things like silver and gold and precious stones to currency. rare: ...
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