It makes good economic sense for Britain to join the Euro as soon as possible, with Sterling's now competitive rate against the overvalued European currency.
1. Firstly, we would be able to join the European currency at a rate at which British costs are low compared with our competitors in France Germany and the Benelux countries.
2. Secondly, sooner or later the Euro is going to fall substantially relative to the US Dollar, helping the Eurozone's competitive position against other major currencies.
Therefore, a double bonus for Britain and a boost to the economy when we need it most.
The downside of this will be inflationary pressure in the UK after the adoption of the Euro, cost-push brought about by higher commodity and import prices and demand pull, due to people abroad actually wanting to buy British goods and services again.
The government and Bank of England (wrongly in my opinion) are more worried about deflation. So they should not be put off by this.
So, what then when our Euro UK inflation does start kicking ass.
Then is the time for some hard pruning of government expenditure, starting with the social security budget.
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