The New Strategy, 1967

Abstract

1967 opened in an atmosphere of low key euphoria. The news was either good or not so bad as it had been. Exports had continued to rise strongly in the second half of 1966 while imports, held down by the expectation of an early end to the Temporary Import Surcharge, fell off a little. The balance of payments had improved quarter by quarter throughout the year. In the exceptional circumstances of the final quarter of 1966 the surplus on current account was an all-time record and even the balance of trade, when seasonally adjusted, showed a surplus for virtually the only time in the whole of the 1960s. Confidence appeared to be reviving and the authorities no longer found it necessary to support the pound.