Presents an econometric model calculating the equilibrium real exchange rate for the British economy. Comparison with the actual rate for most of the 1990s; Great Britain's participation in the European single currency; Effect on jobs and output of correcting the overvalued currency.
ECONOMIC forecasting, ECONOMIC conditions in Great Britain, FISCAL policy, ENVIRONMENTAL impact charges
Abstract
Discusses Great Britain's economic outlook and conditions. Debate over the entry rate of the British pound into the European Monetary Union; Projected inflation rate; Tax harmonization with the European Union; Environmental taxes.