The article examines how the British economy's current account and exchange rate behaved in the 1970s and predicts future exchange rate trends in the 1980s. It discusses how macroeconomic issues like high inflation and unemployment impact trade and exchange rates. The UK's slow productivity growth compared to other major economies is a long-term concern. The study shows that low domestic demand and increased British competitiveness can improve the balance of payments and slow the fall of the exchange rate. It also emphasizes that achieving economic goals in the UK depends on controlling both nominal and real wages, with low inflation rates tied to stable nominal wage growth and full employment linked to restrained real wage growth or increased productivity.