DEVALUATION OF THE POUND STERLING.

The article reports on monetary policy in Great Britain and the impact of a 30% reduction in the dollar value of sterling on world trade. The British government expects the pound-sterling devaluation to balance its international accounts. However, imports to Britain from dollar countries will cost more and British exported goods might remain cheaper if prices are not raised in proportion to a revaluation. The devaluation's success depends on more output to reduce the need for imports and to supply export markets, less consumption and investment, and more domestic saving. Topics are speculation before and after the devaluation was announced, examples of price changes in British goods, Britain's Four-Year Plan, and the possibility of inflation despite a balanced budget.