should britain join the EURO??

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material breach
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#21
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#21
(Original post by Sanctus)
One cannot divorce the socio-political significance of a currency from its economic importance.

Since the earliest times man has recognised that sovereignty is linked to whose face appears on the coin - eg give unto Caesar etc
In a generations' time that significance is going to be minimal

PLUS EDIT: there is no justification for the belief i can see it is important in the short term but the idea is devoid of a logical explanation
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Sanctus
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#22
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#22
Even if a consequence of joining the Euro would be that the streets would be paved with gold, and everybody would have billions of euros in their bank accounts, this still does not just justify surrendering a large part of our sovereignty.

Sovereignty is priceless.
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Big Sister
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#23
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#23
(Original post by Speciez99)
Why is the pound so important? surely jobs and trade are more important? or whether our economic policy is going to be dictated by Brussels, rather than just what we use to pay for our good with?


The £ is important, but perhaps less so than the associated chaos and cost businesses. Also what is the point if costs are not going to be harmonised.

Soon our whole fiscal freedom will be taken away, that will take away our competitiveness.
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Fly By
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#24
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#24
(Original post by Sanctus)
One cannot divorce the socio-political significance of a currency from its economic importance.

Since the earliest times man has recognised that sovereignty is linked to whose face appears on the coin - eg give unto Caesar etc

would you say yes then if the euros that circulate around uk has the queen's face on it?
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Sanctus
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#25
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#25
(Original post by Fly By)
would you say yes then if the euros that circulate around uk has the queen's face on it?
good question - I will have to think about that
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material breach
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#26
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#26
(Original post by Big Sister)
The £ is important, but perhaps less so than the associated chaos and cost businesses. Also what is the point if costs are not going to be harmonised.

Soon our whole fiscal freedom will be taken away, that will take away our competitiveness.
there is a large potential for problems however there is the possiblity of increased trade. Competiveness is surely dicated by the distribution of resources and services? (i am not an economics students so if im wrong i am sorry in advance) how do you think our competiveness would be decreased?
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material breach
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#27
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#27
(Original post by Sanctus)
Even if a consequence of joining the Euro would be that the streets would be paved with gold, and everybody would have billions of euros in their bank accounts, this still does not just justify surrendering a large part of our sovereignty.

Sovereignty is priceless.
It depends on how much economic flexibity there is in the euro system. Surely the idea of sovereignity in the sense of control of our affairs is a totally false idea in todays world were we are to a large extent dependant on the rest of the worlds economies and have little or no control anyway. Joining the euro would give us a strong voice for demanding economic changes around the world.
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Fly By
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#28
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#28
(Original post by Speciez99)
It depends on how much economic flexibity there is in the euro system. Surely the idea of sovereignity in the sense of control of our affairs is a totally false idea in todays world were we are to a large extent dependant on the rest of the worlds economies and have little or no control anyway. Joining the euro would give us a strong voice for demanding economic changes around the world.
totally true, but you will find that the people who vote no do not think like that. they just see whats infront of them
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Big Sister
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#29
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#29
(Original post by Speciez99)
there is a large potential for problems however there is the possiblity of increased trade. Competiveness is surely dicated by the distribution of resources and services? (i am not an economics students so if im wrong i am sorry in advance) how do you think our competiveness would be decreased?
Slower reaction times.
Costs are not harmonised, therefore increased trade (inward) is unlikely, although it could force a stimulation in innovation (possibly)
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Big Sister
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#30
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#30
Oh and the EU likes resticting certain resources!
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john !!
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#31
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#31
No.
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risk-is-good
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#32
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#32
We have been debating this in my Business class.

After many hours of research and debate, everyone in the class voted no.
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Big Sister
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#33
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#33
(Original post by risk-is-good)
We have been debating this in my Business class.

After many hours of research and debate, everyone in the class voted no.
Too true- there needs to be drastic improvements if they are to convince anyone otherwise.
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Jonatan
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#34
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#34
(Original post by Speciez99)
Why is the pound so important? surely jobs and trade are more important? or whether our economic policy is going to be dictated by Brussels, rather than just what we use to pay for our good with?
It is not the currency that is the important thing, it is the interest rate. If we adopt a common currency we will also have to have a common interest rate. The interest rates is one of the most important tools a government has in order to controll the economy. If you give up the controll of the interest rate, you give up the controll of your economy. Either the currency fluctuates, or the economy does so instead.
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risk-is-good
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#35
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#35
(Original post by Jonatan)
It is not the currency that is the important thing, it is the interest rate. If we adopt a common currency we will also have to have a common interest rate. The interest rates is one of the most important tools a government has in order to controll the economy. If you give up the controll of the interest rate, you give up the controll of your economy. Either the currency fluctuates, or the economy does so instead.
Yes, the interest rate is the most important thing.

Take Ireland and Germany in the Euro. Ireland had large inflation, so needed the rate higher. Germany, with next to no inflation, needed it lower.
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Harry Potter
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#36
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#36
(Original post by Jonatan)
It is not the currency that is the important thing, it is the interest rate. If we adopt a common currency we will also have to have a common interest rate. The interest rates is one of the most important tools a government has in order to controll the economy. If you give up the controll of the interest rate, you give up the controll of your economy. Either the currency fluctuates, or the economy does so instead.
Exactly. European countries have very different economies to ours. They generally have very inflexible labour markets (because of the strong unions), so are in recessions for longer and interest rate has less of an effect on consumption because of more fixed rate mortgages. For the moment at least, a blanket interest rate for all of Europe wouldn't be very sensible.
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Baron Huntroyde
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#37
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#37
(Original post by Aylia)
I'd say no to the Euro, yes to the constitution.. and which was the question about?
I don't think you can say No to the Euro but Yes to the constituation, a yes for the latter will almost definately lead to the former.
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pedy1986
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#38
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#38
(Original post by Jonatan)
It is not the currency that is the important thing, it is the interest rate. If we adopt a common currency we will also have to have a common interest rate. The interest rates is one of the most important tools a government has in order to controll the economy. If you give up the controll of the interest rate, you give up the controll of your economy. Either the currency fluctuates, or the economy does so instead.
Surely however, you would agree that although their would be intial problems with convergence - in the long term with the single market and single interest rates, countries economies are going to become much more similar to one another, so this single interest rate that will cause issues short term (as seen atm) - in the longer term the single interest rate will not be much of an issue.
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Howard
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#39
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#39
(Original post by corey)
Surely however, you would agree that although their would be intial problems with convergence - in the long term with the single market and single interest rates, countries economies are going to become much more similar to one another, so this single interest rate that will cause issues short term (as seen atm) - in the longer term the single interest rate will not be much of an issue.
But if that European interest rate is too high then surely that would adversely affect the competitiveness of Europe as a whole.
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pedy1986
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#40
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#40
(Original post by Howard)
But if that European interest rate is too high then surely that would adversely affect the competitiveness of Europe as a whole.
I'm unsure what you mean? You mean if the ECB set the EU interest rate it would damage our world trade competitivness?
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