what would happen if UK join the European Union i mean their currency?
- 1 decade agoFavorite Answer
To know what would happen to UK currency if they join the Euro first you have to ask why UK does not want to join the Euro. There are 2 reasons 1.pride in their currency 2. Afraid that if join the Euro they will fall into a recession and there would be a devaluation of money and other things like bonds stocks and stuff. UK wants to keep their own currency because it allows them freedom to operate if a recession or expansion occurs. They want to be able to increase money supply and decrease money supply as needed by the Economy. If they join the Euro they would not be able to operate their monetary policy but the Central Bank of European Union would. That might not work for the British because they transfer Economic Power to European Union who would seek interest of all European Nations not just the UK. So the central bank of European Union would make monetary policy for all nations and that might harm some nations because it can happen that some nations are in recession and some in expansion. So it requires different monetary approach. In conclusion UK Economic Power might decrease if they join the Euro
- NCLv 71 decade ago
Britain would not have an independent monetary policy. Whether this is good or bad depends on how much the British economy is in sync with the continent and to what extent the British economy responds to external shocks in a way similar to that of continental countries.
Personally, I think that joining the Euro zone would be a mistake, since Britain is much less succeptible to oil price shocks than France, Germany, or Italy. On the continent, increasing oil prices call for expansionary monetary policy; in Britain, the expansion may not be necessary, since Britain is largely self-sufficient when it comes to oil.
In my opinion, Britain should look to Norway for inspiration. Norway has even less incentive to join the Euro zone, and for the same reason. Periods of high oil prices that are a scourge of Europe are periods of high prosperity for Norway. Norwegian monetary policy, consequently, has to run contrary to that of the Euro zone, so there is no talk of Norway joining the Euro zone...
- 1 decade ago
It would save me a fortune to visit my family in England now I live in Spain!
- 1 decade ago
It would make it a hell of a lot easier for people from Ieland who visit England often
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- Anonymous1 decade ago
it would be the euro and it would fcuk our country up EVEN more! (and yes, that IS possible)!!