Quote:
Originally posted by Throntar:
I was reading in the local newspaper this AM that Blair won the election in a landslide.
One of the things that the article stated was that immediately thereafter, the "sterling" fell upon fears that the UK would move to the Euro. Here's the question:
Why is there so much opposition in the UK (the article stated that 75% are opposed to it) to a move to the Eurodollar?
Please keep in mind that I'm from the US and don't have even a little bit of an understanding of the issues involved. Wouldn't a common currency promote greater freedom of trade...or at least ease of trade?
Thoughts?
|
Eurodallar LOL, thats a Hirecar firm
Well one reason not to go to the Euro is that all monetary control moves from the member states lose control of their own money issuing etc, wich is any good economist will tell you is an important tool in regulating economies. This is true when an economy is in slump, the governments via their central banks can lower the value of their currency, making exports cheaper to foreign countries, thus generating demand for goods/service and hopefully kicking the economy out of the slump.
Also on a more practical note when the UK went decimal, all prices rose as prices always get rounded to the next highest decimal value, eg. goods cost that went £3.56 from pre decimal would be re valued to £3.99.
In addition prices will stabilise across Europe, but at the highest levels, since Europe will all be able ot buy at the same price, it will be difficult for them to look abroad to get cheaper imports. Shipping from the US cripples European purchases from there.
------------------
Holy Avenger of the OHF and part time Pinguindiebjäger