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Economic Viewpoint: Options for UK policy within the ERM
Author(s) -
CURRIE DAVID,
DICKS GEOFFREY
Publication year - 1990
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.1468-0319.1990.tb00620.x
Subject(s) - surprise , exchange rate , context (archaeology) , economics , government (linguistics) , outcome (game theory) , balance (ability) , monetary economics , economic policy , macroeconomics , international economics , microeconomics , geography , psychology , social psychology , medicine , linguistics , philosophy , archaeology , physical medicine and rehabilitation
Although the precise timing of the British government's decision to take sterling into the Exchange Rate Mechanism on 8 October was a surprise, the broad features of the decision were not. Indeed, we argued in the June Economic Viewpoint for entry this autumn with broad 6 per cent bands and a high central rate against the DM, illustrated at DM2.95, precisely in line with the outcome. Now that sterling is in the ERM, the conduct of UK macroeconomic policy is profoundly altered, with changes not just in its technical aspects but also in the balance of the supporting institutions. In this Viewpoint, we explore the map of macroeconomic policy in the post‐flouting, ERM context.