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View Diary: Breaking - Thatcher Dead (159 comments)

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    limpidglass

    Thatcher took the UK into the Exchange Rate Mechanism which was the precursor to monetary union and the proposed Ecu (European Currency Unit).

    It was her successor John Major who was forced to withdraw from the ERM on "Black Wednesday" in 1992

    The Treasury took the decision to defend Sterling's position, believing that to devalue would be to promote inflation.[6] On 16 September the British government announced a rise in the base interest rate from an already high 10 to 12 percent in order to tempt speculators to buy pounds. Despite this and a promise later the same day to raise base rates again to 15 percent, dealers kept selling pounds, convinced that the government would not stick with its promise. By 19:00 that evening, Norman Lamont, then Chancellor, announced Britain would leave the ERM and rates would remain at the new level of 12 percent (however, on the next day interest rate was back on 10%). It was later revealed that the decision to withdraw had been agreed at an emergency meeting during the day between Norman Lamont, Prime Minister John Major, Foreign Secretary Douglas Hurd, President of the Board of Trade Michael Heseltine and Home Secretary Kenneth Clarke (the latter three all being strong pro-Europeans as well as senior Cabinet Ministers), and that the interest rate hike to 15 percent had only been a temporary measure to prevent a rout in the pound that afternoon.

    "Who stood against President Obama in 2012?" - The trivia question nobody can answer.

    by Lib Dem FoP on Mon Apr 08, 2013 at 03:26:51 PM PDT

    [ Parent ]

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