European Currency

[Bagpuss]

Different countries need different interest rates at different times. We have total flexibility in the UK to achieve this. Of course, you just don't understand and never will.

I understand that in your world UK interest rates should be set to whatever suits you. You still fail to understand that low interest rates got us into this mess and not high ones. You strugle with the basic concept of economics, is it because you are hard of thinking?

[PM-Junkie]

You know that's nonense. If we'd joined back in 2000 when the £ to Euro was more like 1.6, our currency would now be worth much more than it currently is.



The flaw in that argument is that the Euro couldn't fail to be heavily influenced by an economy as large as the UK joining. You can't hold up the current position as evidence we shouldn't have been a part of it because the current position would have been radically different if we had been part of it.



I'd say instability always harms trade. An exporter might get a temporary boost in demand because their currency has fallen, but they than have a problem of being able to meet the demand. They can't take on new workers, build a new factory or whatever because the boost is temporary and completely beyond their control. Next month on a whim of the currency traders, their product is now suddenly much more expensive abroad and there's no demand.

And a British company can't operate in Euros, unless it can negotiate with all its workers to be paid in Euros (pretty unlikely) and all its suppliers to operate in Euros. The only sensible solution to all this is move your factory to somewhere within the Eurozone and make your British workforce redundant.

But as long as we have control of our interest rates.

You mentioned in an earlier post that you do not understand economics. After reading this, I heartily agree with you.

[stackpole]

All these arguments about the exchange rate being better or worse than it once was are superfluous. It changes both ways.

The exchange rate adjusts to match reality. If you don't have it, economical mismatch must manifest in other ways.

[Cyberman]

I understand that in your world UK interest rates should be set to whatever suits you. You still fail to understand that low interest rates got us into this mess and not high ones. You strugle with the basic concept of economics, is it because you are hard of thinking?

Further confirmation as if it was needed that you know absolutely nothing !!

[Menelaus]

The core issue here with moving from £ to € is not, for me, some patriotic desire to maintain control of our national finances or some historic requirement to keep hold of the £ - nothing nearly as close as that.

• I want to know that the Irish experience of price gouging will not be repeated.
  
• I want to know that before the UK were to enter into such an arrangement a referendum would be held
  
• Crucially - I want Peter Mandlescum to have NO PART in it (preferably, he'd be in prison for life, admittedly)

[Board Game Geek]

Menelaus wrote : Crucially - I want Peter Mandlescum to have NO PART in it (preferably, he'd be in prison for life, admittedly)

/joke on

And that would be a penance how exactly ?

/joke off

[sweetandsour]

What would be the name of the unit of currency in an independent Scotland?

Probably the Euro, though there are quite a few who would happily stick with the Giro.

[DodgyAgent]

I understand that in your world UK interest rates should be set to whatever suits you. You still fail to understand that low interest rates got us into this mess and not high ones. You strugle with the basic concept of economics, is it because you are hard of thinking?

What an astonishing statement. with an assertion at the end that someone else doesnt understand economics!!

Just who's interests are exchange rates supposed to be in?

If they are set in the UK by a UK govt then presumably we have the right to set them as suits the UK? If the govt gets them wrong then we change the government. Not so the Euro. Exchange rates with the Euro are set fpr the common interest of the EU and they have ended up being wrong for everyone in the EU - too high to stimulate German spending and too low to curtail Irish spending.

Neither Ireland nor Germany can do anything about managing their own economies.

You seem to believe that there should be some puritanical policy of high interest rates enforced, preventing borrowing as if borrowing like teenage sex is some sort of immoral activity what a miserable, arrogant "I'm all right Jack" old fart you are... Why not go one step further and stone anyone with a mortgage?

If you think that the EU states will converge into the same economic cycles as each other then just look at the last 10 years of the Euro .. it will never happen. Even in the UK there are disparities in parts of the economy that would require a two tier surrency system.

[Menelaus]

/joke on

And that would be a penance how exactly ?

/joke off

True, he'd probably enjoy taking it up the arse.

[HairyArsedBloke]

True, he'd probably enjoy taking it up the arse.

I'd let Atw do it. I wouldn't touch that ........