The Economic Policies Of The Wilson Government To The United States

Due to the devastation of The World War2, the post-war British economy was in the brink of collapse. After the reconstruction of the1950s, the British economy had been restored, but the pace of development was very slow, emerging economic problems, resulted in the so-called British disease-"stop-go". To1964, the sterling occurred confidence crisis, the pound faced the risk of substantially devaluation, the British economic was in the risk of crisis. After the election of1964, the new Prime Minister Wilson, in order to stable the pounds and survive the crisis, developed new foreign economic policy to the US.The core of the Wilson Administration towards America’s economic policy was the implementation of trade protectionism and state intervention in the foreign exchange market.Wilson’s policy of trade protectionism had violated the laws of the market economy, produced serious consequences. After the implementation of protectionist trade policies of the Wilson government to the United States, the import and export merchandise of United Kingdom had a downward trend, and making the pounds in the risk of further depreciation. Wilson’s Government on the policy of state intervention in currency markets, it also did not prevent the devaluation of the pound. After the implementation of the new economic policy towards America, the pound began to substantially devaluate.The economic policies of the Wilson government to the United State seriously damaged the U.S. exports to the United Kingdom, forced the U.S. to change its export strategy, the policy of expanding exports to other countries. At the same time, the depreciation of sterling had caused the turmoil of the dollar. In orde to stabilize the dollar, the U.S. had to take measures to help the Wilson government stable the pounds. In this case, the Wilson government had to return to the track of economic cooperation with the United States. Therefore, in the Wilson administration, the Anglo-American economic relations showed a very complex situation.