Denseman on the Rattis

Formerly known as the Widmann Blog

economicsenpolitics

The five tests have been met



Euros
Originally uploaded by William Spaetzel

It made me happy today to see that Duff of the LibDems has pointed out that the UK should join the euro:

In 1997 Mr Brown set five so-called economic tests to judge sterling’s accession to the eurozone. Suddenly, all these criteria are met. The pound has fallen to a competitive exchange rate level. The City risks being pushed aside as supervision and regulation is strengthened inside the eurozone. And the economic cycles of Britain and the eurozone are cow completely in sync as they both plunge into recession together. […] But unless he now changes the terms of the British debate about EMU, the pound will be the ping pong ball bouncing beyond control between the giant footballs of the dollar and the euro.

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