the extent to which a sharp depreciation of the pound will improve the UK current account of the balance of payments.

• Exporters will be able to sell their goods more cheaply and so
• increase their total revenue or total exports rise
• • Imports into the UK become more expensive so less are demanded
• at the higher price and there is a fall in expenditure on imports
• • In the short run manufacturing orders will not change as they are
• struck at a fixed price for a number of months, but in the long run
• change should take effect

• Recognition that manufacturing exports account for…