Britain’s opposition Labour party incurred a lot of media displeasure with the recent disclosure that it had contingency plans to cope with a run on sterling. In fact, such “war gaming” was nothing more than prudent. Indeed, it is to be hoped that the authorities, too, have such plans (though, of course, it would be madness to say so).
The thinking behind Labour’s plans was that, were left-leaning party leader Jeremy Corbyn to become premier, some of his policies (and especially his commitment to nationalization) might panic international markets, causing GBP to crash in a welter of capital flight. On this scenario, it seemed – even a couple of weeks ago – that there would, at least, be plenty of time to prepare. After all, few expected an election to be called in the near future.