Denseman on the Rattis

Formerly known as the Widmann Blog

economicsen

Joining the euro


Euro coins
Originally uploaded by Mesq

Even in The Telegraph blogs people are now seeing the light. 🙂

Fraser Nelson criticises it but a commenter, Oliver Kamm, replies to the rhetorical question about what we would gain:

Increased trade flows, owing to removal of exchange-rate risk in our most important markets; greater foreign investment, for the same reason (in reverse); reduction of vulnerability to economic shocks due to exchange-rate fluctuations (particularly important when the exchange rate is driven by asset-market shocks); the potential for the City to gain still greater importance as a financial centre owing to integration of financial markets; and reduction in influence of some of the nastiest and most xenophobic elements in British public life.

Perhaps more people will start considering it after the summer holidays when they realise how much the pound has dropped in value?

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