Surely with the debt load the UK has right now, one can only hope the GBP depreciates at a slow but steady rate over the next few years?
Here in Canada it's considered a disaster if the dollar rises too much too quickly. We're an export-oriented economy and a rising dollar depresses the manufacturing and extraction industries every time it happens.
You say GBP going down like it's an inherently bad thing and I can't figure why. If either CAD or the GBP started consistently appreciating over time, both countries would be in quite a lot of trouble. In fact the monetary policy and debt issuance policies assume slight depreciation.
I understand the macroeconomic argument, but I still think that the fact that inflation will totally destroy an uninvested, normal middle-class-sized savings account in less than a generation is a huge obstacle for normal people building wealth. That is the inherently bad thing about it.
I primarily attribute the growing "wealth gap"---the growth in the net wealth owned by the top 0.1% of people, from a 5% share in 1970 to a 20% share in 2020---to the end of Bretton-Woods and the gold standard (1971).
Here in Canada it's considered a disaster if the dollar rises too much too quickly. We're an export-oriented economy and a rising dollar depresses the manufacturing and extraction industries every time it happens.
You say GBP going down like it's an inherently bad thing and I can't figure why. If either CAD or the GBP started consistently appreciating over time, both countries would be in quite a lot of trouble. In fact the monetary policy and debt issuance policies assume slight depreciation.