UK will join EMU but only when time is right

Article Abstract:

The UK government is coming under growing pressure to make a firm decision about membership of the European single currency. However, it seems unlikely that this will happen in the near future, especially as there is still a very slight chance that the single currency will not go ahead according to schedule in 1999. The basics of the government's position on this issue are becoming clearer, with entry in the first round seeming very improbable. However, it is also unlikely that the government will opt for an outright rejection of the single currency.

Administration of General Economic Programs, Intnl Economic Policy, Planning, International economic relations, European Monetary System

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Why not just abandon the bells and whistles?

Article Abstract:

The UK government's macro-economic policy focuses very strongly on keeping inflation under control. Its latest inflation target has caused considerable confusion, however. It is made up of a goal to continue to achieve underlying inflation of 2.5% or less, and an additional statement that inflation will remain within the range of 1-4% as long as interest rates are consistently set at the level required to reach this inflation target. Policy will now be set so that the expected value of inflation in two years will always be below 2.5%.

Inflation (Finance), Inflation (Economics)

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Four reasons by base rates should be cut

Article Abstract:

Some economists are now putting forward a convincing argument for reducing base interest rates. Monetary tightening in 1994 has led to growth in the UK economy slowing down, and it is now possible that economic activity will come to a standstill for a few quarters while surplus stocks are shed. Furthermore, there are some indications that the underlying performance of the labour market is improving and that price inflation may be going up. Against this background, it now seems less risky to make a small cut in base rates.

Interest rates

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