Originally Posted by 0celot
sorry mate, gotta disagree there...
the Euro could be potentially disastarous for the UK economy. Obvioulsy here the main point is the setting of interest rates.
Atm Britain is in a period of sustained growth due to the fact that the Bank of England sets Interest rates which help control the inflation of UK economy.
By joining the 'one size fits all' interest rate of the Eurozone Britain will lose this ability and could result in inappropriate rates at a specific time in the economic cycle. The EU would have to set rates according to an overall performance in Europe. The UK is very sensitive to changes in interest rates for a number of reasons, not least of all the fact that such a large number of people have large or complete mortgages.
Also, with this is is very important to remember that UK is always at a completely different point in its economic cycle to the rest of europe.
It may seem that the Euro has been successful but it wont be tested until there is a major divergence between two countries.
(lol.. you may have guessed it... i recently handed in my businesss coursework.."Should the UK join the Euro?".. :D this is the shortened version)
my brain is tired now...