16 September 1992: The Black Wednesday That Changed Britain?s Fate
30 years have since passed when the then ex-Chancellor of the Exchequer announced Britain's leaving of the EMS. We look at what led to this decision.
The post 16 September 1992: The Black Wednesday That Changed Britain’s Fate appeared first on LUXUO.
Great Britain’s Ex-Prime Minister John Major (Left) and Ex-Chancellor of Exchequer Norman Lamont (right).
16 September this year marked the 30th anniversary of the Pound Sterling’s ejection from the European Monetary System (EMS). Described as a “disastrous day? by then Prime Minister John Major, he never recovered politically from that momentous day. The ex-Chancellor of the Exchequer was convinced that the indexation to the Deutsche Mark, which underlay the EMS, would at least indirectly benefit an unstable British economy conducive to inflationary outbreaks. But he did not manage to persuade Margaret Thatcher seven years before the unfaithful day. The Pound would gain credibility and the monetary policy of the Bundesbank would reinvigorate a chronically ill Great Britain.
The hopeful prospects were dashed when the very heavy burden of Germany’s reunification began to weigh in and the country was left with no choice but to raise its interest rates. This had a domino effect and quickly rubbed off on Great Britain and the country was left with no choice but also to raise its interest rates so that the flight of capital was kept to the minimum. Bad timing was all that could be said for Great Br...
The post 16 September 1992: The Black Wednesday That Changed Britain’s Fate appeared first on LUXUO.
Great Britain’s Ex-Prime Minister John Major (Left) and Ex-Chancellor of Exchequer Norman Lamont (right).
16 September this year marked the 30th anniversary of the Pound Sterling’s ejection from the European Monetary System (EMS). Described as a “disastrous day? by then Prime Minister John Major, he never recovered politically from that momentous day. The ex-Chancellor of the Exchequer was convinced that the indexation to the Deutsche Mark, which underlay the EMS, would at least indirectly benefit an unstable British economy conducive to inflationary outbreaks. But he did not manage to persuade Margaret Thatcher seven years before the unfaithful day. The Pound would gain credibility and the monetary policy of the Bundesbank would reinvigorate a chronically ill Great Britain.
The hopeful prospects were dashed when the very heavy burden of Germany’s reunification began to weigh in and the country was left with no choice but to raise its interest rates. This had a domino effect and quickly rubbed off on Great Britain and the country was left with no choice but also to raise its interest rates so that the flight of capital was kept to the minimum. Bad timing was all that could be said for Great Br...
| -------------------------------- |
|
|
