The eurozone – our economic saviour?
As well as old theorists being brought out to help frame the financial crisis in a new context, old theories and policies seem to be getting a new airing as well. In the articles below various commentators consider whether joining the euro may offer a solution to our economic situation.
How the euro is gaining currency Guardian (6/10/08)
Contagion could fracture the eurozone Guardian (6/10/08)
Dithering Britain needs its own plan and it may hinge on joining the euro Guardian (1/10/08)
Questions
| 1. | Explain how interest rates are set in the eurozone. To what extent might this act as a constraint on policy making in times of economic downturn? |
| 2. | Discuss the arguments for and against the UK joining the euro. |
| 3. | Assess reasons why joining the euro may be more appropriate for the UK now than a decade ago. |