Letter: Britain's secret economic policy

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Sir: It is totally unfair, but absolutely necessary, to criticise the Government for not having an economic policy ('Lamont tries to stop pound's fall', 2 February). Without such criticism, the policy could not possibly work. The policy could never work if it were to be made known. The media and the speculators are the eager, but innocent, accomplices of the policy and are being manipulated to play their part: which they are doing superbly.

The policy is to drive a much over-valued pound down to a level of about dollars 1.20. This can only be done in ratchet steps behind a facade of reluctance, bungling and seeming drift. If it were to be announced, such a policy would never work, apart from infuriating the European Community. Just as the EC was the French revenge on the British Empire, so the present deceptive fumbling is the sophisticated British revenge on the Bundesbank.

Economics has now become like quantum mechanics, where any attempt at logical measurement inevitably changes what is measured, so any announced policy is immediately void. The Government is to be congratulated on knowing this ahead of economic analysts.

Yours sincerely,


London, W1

2 February