PREVIEW

... raise theirs too, and wouldn’t that destroy the UK economy?

A: Yup. That’s exactly what happened. Or to be precise, they surrendered right before it collapsed.

The dopamine- and money-addled hedge funds bet on the UK pulling out of the ERM—and thus began one of the most legendary short-selling episodes in financial history: the assault on the British pound.

***

Of course, the UK didn’t drop out of the ERM right away. In fact, they had only joined it about three m ...

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