Skip to content

Breaking a Peg: September 1992

The Day, and the Arithmetic

Put the whole mechanism together on the one day it ran to completion.

10 min95 XP available4 challenges

Put these in order

Put 16 September 1992 in order.

Earliest cause at the top

  1. That evening Britain suspends its ERM membership

    The floor is gone, and so is the trade

  2. The base rate is raised from 10% to 12%

    Announced mid-morning to make the short expensive

  3. A further rise to 15% is announced

    It never takes effect

  4. The selling does not stop

    Nobody believes 12% will survive the winter

  5. Sterling opens under heavy selling and sits on its floor

    The Bank must buy every pound offered at DM 2.7780

Answer to continue.