§ Mr. Gouldasked the Chancellor of the Exchequer whether the 1976 devaluation of the £ sterling produced the J-curve effect which in the past followed an effective devaluation.
§ Mr. Robert SheldonThe falls in the exchange rate in 1976 were accompanied by a stronger tendency than on previous occasions for exporters to raise the sterling price of their products. Thus, the initially adverse effect of a fall in the exchange rate on the current account of the balance of payments—the J-curve—seems to have been less than on previous occasions.