Maggie Thatcher, Hard ECUs, and the Eurozone shambles

Margaret Thatcher and her party members expressed reservations about joining a common currency way back in 1990.  Some arguments used to buttress those reservations seem remarkably prescient today.

… the imposition of a single currency, as opposed to a common currency, would rule out for all time the most effective means of adjusting for national differences in costs and prices … that in turn would cause widespread unemployment, which would probably exist on a perpetual basis, and very serious financial imbalances …

and

there would have to be enormous transfers of money from one country to another … poorer countries … would get those big transfers of money …

and

this was not really about monetary policy at all but about a back door to a federal Europe, taking many democratic powers away from democratically elected bodies and giving them to non-elected bodies …

The full piece is here.


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