Economic Tensions and Conflict in the Commonwealth 1945-c. 1951
In the immediate aftermath of the Second World War economic relations between Britain and the Commonwealth were very close, and the Empire was of greater economic importance to Britain than at any previous time. International economic conditions were dominated by the dollar shortage, and particularly after the sterling crisis of 1947, most of the sterling area members of the Commonwealth were forced in even closer interdependence. But, in contrast to the expectations of many policymakers, the world economy after the war was characterised by buoyant demand and limited supply, and the resulting problems of scarcity intensified conflict and tensions between Commonwealth countries. These frustrations made Commonwealth countries eager to push for the restoration of currency convertibility and of multilateralism in the 1950s.
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