This paper examines some of the effects that the emergence of the United Kingdom as a major oil producer, together with the pursuit of firm financial policies as part of an antiinflationary strategy, has had on the U.K. economy and, in particular, on the real exchange rate of the pound sterling,...

The hypothesis that price expectations exercise at least a partially independent influence on actual price behavior is empirically tested. The method used, which differs from earlier analyses, quantifies data from qualitative price surveys to derive an explicit time series of price expectations....