Economic Problems - 1945 "A Financial Dunkirk" POLICIES Flashcards
What did Keynes have to go through with America to get what he wanted?
Difficult negotiations
What happened in November 1945?
Keynes secured a loan with America
How much did Keynes secure?
$3750 million at 2% interest
When would repayments start?
1951
What was a problem with accepting this loan?
There were conditions
What did Britain have to end?
Empire preferences
What did Britain have to accept?
Policies of multilateral trade
What did they have to join?
The General Agreement on Tariffs and Trade in 1947 (GATT)
What did Britain have to do to the £?
Make it fully convertible to dollars within a year
What did the convertibility of the pound cause?
It put economic recovery under pressure
What did Britain do?
They increased exports to USA but kept British imports as low as possible
What did we have to change?
The way we did business
