The UK and the Euro: Some Key Economic Issues

Abstract

The most important conclusion to emerge so far from the interminable debate whether the UK should join European Monetary Union (EMU) is that, as things stand at the moment, neither side appears to be winning the economic argument! It is perfectly true, as supporters of the membership argue, that the country’s economy is so closely linked with those of other nations in Western Europe that the delay in adopting the single currency would be costly in the long term. However, the opponents are also correct when they point out that joining EMU would deprive the UK of important benefits that arise from the ability to pursue ‘independent’ macroeconomic policies.