Using the currency's 2007 peaks as a guide, the pound has fallen more sharply against the dollar and euro (around 25-30%) than it did after the exit from the Exchange Rate Mechanism in 1992.

ECONOMIST: Buttonwood: Race to the bottom | The

Import prices will be pushed up by a weaker pound, whose 6% fall in the last three months was the biggest since sterling's ignominious exit from the European exchange-rate mechanism in 1992.

ECONOMIST: Economic woes

More optimistic news in Europe included a meeting in Brussels this week in which EU leaders agreed to a crisis resolution mechanism that would give the EU an exit plan in situations of heavy debt and default.

FORBES: Magazine Article