The long decline of the Great British Pound

By Frances Coppola
This chart caught my eye:

It's the GBP/USD exchange rate from 1915 to the present day. Accompanying this chart on Twitter was the comment "quite shocking though how much the pound has been devalued since 1945".
This is a fine example of the way in which economic indicators can be misinterpreted when the historical narrative underlying them is ignored. What this chart shows is indeed shocking, but not because the value of the pound has fallen. It is shocking because it gra...


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