Wars And Depression (1914-1950

(From the FT) In common with the rest of the world Britain suffered severe dislocation during the two world wars and the intervening years. The unemployment rate rose to 15% during the Great Depression, but in many ways the early 1920s were even worse, with deflation exacerbating the postwar recession. An inflexible exchange rate caused problems of adjustment throughout the period and the 30% devaluation of sterling in 1949 finally underlined that Britain was no longer a dominant power. The return to a peacetime economy after demobilisation saw a populace determined not to repeat the experiences of the past 30 years.