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Le retour de la livre sterling à l'or se déroula le 13 mai 1925 (sans dévaluer), pour une question de prestige, alors même que le monde venait de subir une hyperinflation consécutive au premier conflit mondial. Pour rappel, la définition de l'hyperinflation donnée par l'économiste Phillipe Cagan dans son article « The monetary dynamic of hyperinflation », publié en 1956 est « une période pendant laquelle l'inflation est supérieure à 50% par mois ». Ce fut très ambitieux de penser que la livre puisse assurer la convertibilité. Cela se fera au prix d'une politique d'austérité de hausse des taux menée par Churchill.

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