Responding to a friend’s complaints about the exchange rate, where, oh where has the dollar gone ask Jane Galt.
In fact the Pound is probably normally over valued against the dollar because a strong exchange rate is a more popular policy in the UK. Why? Well if you’ve lived there you’ll understand that at least 2 foreign holidays a year are virtually de rigueur - thus the British take about 32 million foreign holidays a year while the whole of the US takes just 19 million. So an exchange rate as weak as the dollar is today, while just an interesting anecdote to most Americans might be politically unacceptable in Britain.
Posted by wardx107 at October 4, 2004 09:49 AM