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Author(s) -
Dicks Geoffrey
Publication year - 1989
Publication title -
economic outlook
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.1
H-Index - 8
eISSN - 1468-0319
pISSN - 0140-489X
DOI - 10.1111/j.1468-0319.1989.tb00438.x
Subject(s) - publishing , overheating (electricity) , autonomy , inflation (cosmology) , economics , exchange rate , accounting , monetary economics , political science , law , engineering , physics , electrical engineering , theoretical physics
There are enough similarities in the performance of the British and Spanish economies in recent years to make the entry of the peseta into the EMS on 19 June an event of interest to UK observers. Faced with the problem of overheating, the Spanish authorities have chosen to use the external discipline of a fixed exchange rate as a way of fighting inflation. In similar circumstances, the UK has opted for autonomy, preferring to use internal monetary discipline to bring inflation back down to the European average ‐ itself one of Mrs. Thatcher's conditions for EMS entry. Over the next year or two it should be possible to form a view on the relative merits of the two approaches to counter‐inflation policy.