Devaluation Doesn't Work

There is a lot of nonsene out there being pushed as economic wisdom. One of that worst is that the collapse of the pound will lead to the revival of the UK ecomomy. It's not going to happen. Today's terrible industrial production figures make that clear. Output fell by another 2.2% in December, and is now 10% down on its peak. Of course, it is hard to export when the whole world is in recession, but there should be some signs of stability by now. If Britain could devalue its way out of trouble, we would have been booming all through the 60s and 70s. In reality, the UK needs a strong currency, and it is not going to have that until the government gets to grip with taxes and spending.