Should UK Sterling value be fixed to Euro?

Question

UK doesn't want to give up the pound sterling, but should the value of the pound-euro be fixed (not floating).

This might help the stability of the currencies.

Answer 1

There are too many unstable economies concerned with the Euro.

Sterling forever.

Answer 2

No, for the same reason why we should not join EMU.



Interest rates are used to control the economy of a currency. If inflation gets too high, interest rates are moved higher to make borrowing less attractive and saving more so. Hence there is lower demand for goods and inflation falls.



But you can only have one interest rate per currency. So in EMU, the Central Bank has the problem of trying to control inflation and growth across all member states. Whilst growth is raging and inflation is high in Dublin, people in Lisbon may be poor and need a stimulus to promote some growth. It's a crazy idea and bound to fail.



When you fix two currencies together, it creates exactly the same effect. Remember Major and Lamont trying to keep to GBP fix in the 90s? What a disaster!



Forget stability of currencies - the market is always right. The UK needs to control its own economy, as does each member state.

Answer 3

The reasons why the UK hasn't given up the pound are economic, not wanting to give up the pound doesn't come into it. Pegging the values together would be counter-productive up until the moment that it is finally decided that the UK will join the Euro, at which point a fixed rate will obviously need to be established.

Answer 4

It would make far more sense for both Ireland and Britain, if Ireland were to re-adopt the Irish Punt (which always sounded to me like something fishermen used on the Shannon) rather than Sterling - and, preferably, when our Greek comrades liberate themselves from the Brussels empire, repudiate capitalist debt and readopt the Drachma. The complications for Britain in particular, of Ireland readopting Sterling, don't bear thinking about. It would be a marvellous blast of clean healthy fresh air for us all to set ourselves free from the doctrinaire capitalist imperialists who actually told the Irish People they had voted the wrong way in a referendum and had to vote again, and want to cancel Greek elections because it looks as though the anti-imperialist Left will have a large majority. So much for their respect for the will of the people! PS - Come off it - any system based on investment, whether by conspiracies like banks and vulture capitalists, or by rich bastards, in profit motivated undertakings is capitalism. I suggest you read less economic theory - particularly less of the Austrian madmen's vapourings, which are very, very detached from reality - and more history, the conclusion of which is, in essence, that any form of capitalism is basically the tyranny of rich bastards and institutional conspiracies over the people. Les nouveaux aristocrates a la guillotine!

Answer 5

Look at the performance of the UK economy over the last 15 years. Then look at the performance of the Euro-zone economies.



The answer is no.

Answer 6

It is not properly floating. It is fixed to the European monetary snake.



The Euro will not survive for much longer, the Italians Greeks Spanish and French have broken it beyond repair.

Answer 7

No the Euro is due for a large fall soon. Watch this space

Answer 8

Certainly not, we want nothing whatever to do with that Mickey Mouse money !

Answer 9

no feckin way