1 / 7

Abandoning the pound is in the best interest of all of Britain

Abandoning the pound is in the best interest of all of Britain. Larry Mallari Tom Brinkerhoff Tom Schemkes. Pro-Euro Politicians. Polls suggest a slight majority of Swedes and Danes favor the Euro

lisbet
Download Presentation

Abandoning the pound is in the best interest of all of Britain

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Abandoning the pound is in the best interest of all of Britain • Larry Mallari • Tom Brinkerhoff • Tom Schemkes

  2. Pro-Euro Politicians • Polls suggest a slight majority of Swedes and Danes favor the Euro • If the EU enlarges to the east, Britain alone could be left as the only member remaining outside the currency union • Britain would have more influence in the EU if they joined the common currency

  3. Benefits of a common currency • Reduced transaction costs • Reduced uncertainty risk • Create long-term capital flows • Extinguish hot monies • Synergy between member nations

  4. Prime Minister Blair’s Comments • During the election campaign, he wanted Britain to join the Euro • “Save the Pound” politicians slogans have backfired in the opinion surveys • Put Euro membership to a referendum providing that the five self imposed economic tests are met

  5. Five Economic Tests • Is there enough flexibility in the economy to deal with problems • Would entry encourage firms to make long-term investments in Britain • Would entry damage the City’s financial services industry • Promote growth, stability and jobs • Is the UK business cycle compatible with the eurozone

  6. Opinions • Recent opinion surveys in the U.K., Sweden, and Denmark show a distinct warming toward the Euro • Bank of England Governor Sir Edward George called the single currency a “fantastic success” and said the introduction of euro notes and coins this year has been an “absolute triumph”

  7. Conclusion • Polls seem to suggest that Britain will join the euro eventually • It will reduce transaction costs because of reduced exchange rate fluctuations which will increase economic growth • Joining the euro should lead to more investments, more jobs, and lower interest rates through fiscal responsibility demanded

More Related