Editing Deflation (section)

===United Kingdom===
During [[World War I]] the [[United Kingdom|British]] [[pound sterling]] was removed from the gold standard. The motivation for this policy change was to finance World War I; one of the results was inflation, and a rise in the gold price, along with the corresponding drop in international exchange rates for the pound. When the pound was returned to the gold standard after the war it was done on the basis of the pre-war gold price, which, since it was higher than equivalent price in gold, required prices to fall to realign with the higher target value of the pound.

The UK experienced deflation of approximately 10% in 1921, 14% in 1922, and 3 to 5% in the early 1930s.<ref>Bank of England Quarterly inflation report Feb 2009 p. 33 chart A</ref>