Business Attitudes to EMU and the Risk to Stability

Stephen Davies

Chapter 12 in The Impact of the Euro, 2000, pp 177-184 from Palgrave Macmillan

Abstract: Abstract On 18 January 1990 Financial Weekly published the results of a poll on business attitudes towards membership of the Exchange Rate Mechanism (ERM). It showed that 97 per cent of top executives wanted the UK to enter the ERM, while two-thirds of them said the exchange rate at which sterling entered did not matter. Business had convinced itself that what concerned it above all was exchange rate stability, and its views played a very large part in creating the public mood that more or less forced Mrs Thatcher’s government into the ERM. By 1992, after two years of recession and mounting bankruptcies, business had learnt that exchange rate stability could bring with it more problems than it solved.

Keywords: Exchange Rate; Interest Rate; Monetary Policy; Fiscal Policy; Real Exchange Rate (search for similar items in EconPapers)
Date: 2000
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-37244-3_12

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DOI: 10.1057/9780230372443_12

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