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I think we should have a vote on the usage of the euro in the UK. Most of us are situated in the UK and many of us may not get a say in a future referedum- so let's have a 'play' vote.
Yes- we should take on the euro in the UK
No- I don't want the euro used in this country
just yes or no- like the notable elections. It will be intrested to see the results.
Yes- we should take on the euro in the UK
No- I don't want the euro used in this country
just yes or no- like the notable elections. It will be intrested to see the results.
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I am rather split in my feelings for this, I think it would be a good idea for business. As it is surely we will lose out even more than we are already as other members of the Euro will trade with each other for ease, better prices etc
UK needs to get itself back into the export market so that many business can survive surely.
But... I personally want to keep some identity, I have not agreed with the other silly laws brought in by the EU, ie weights and measures and silly things like the size and shape of bananas!
Also with Europe controlling the interest rates.. I understand it does cause too many problems for inflation.. but what about my mortgage? what sort of level of interest would I expect?!
If there was a UK referendum.. and I think that a decision like this should not be made without one.. I would need more information before I could vote.
sorry to go on!
UK needs to get itself back into the export market so that many business can survive surely.
But... I personally want to keep some identity, I have not agreed with the other silly laws brought in by the EU, ie weights and measures and silly things like the size and shape of bananas!
Also with Europe controlling the interest rates.. I understand it does cause too many problems for inflation.. but what about my mortgage? what sort of level of interest would I expect?!
If there was a UK referendum.. and I think that a decision like this should not be made without one.. I would need more information before I could vote.
sorry to go on!
Switch on BBC1 now if you wanna learn something about the Euro.
No to the Euro, and no to Europe in general.
Not on any financial grounds, simply on grounds of national identity, which is being removed from each country in Europe a little at a time.
First we can't use our own measurements... then we can't use our own currency... and it's getting so that we can't even wave our own flags. What next? Can't use our own language? Can't sing our own National Anthems?
Patriotism does not suck - there is nothing wrong with being proud of your country. Remove that, and you remove part of people's identity.
It's some people's interpretation of 'patriotism' that sucks - a belief that they are somehow better than another nation - that's what leads to wars. Well, that and politicians.
Not on any financial grounds, simply on grounds of national identity, which is being removed from each country in Europe a little at a time.
First we can't use our own measurements... then we can't use our own currency... and it's getting so that we can't even wave our own flags. What next? Can't use our own language? Can't sing our own National Anthems?
Patriotism does not suck - there is nothing wrong with being proud of your country. Remove that, and you remove part of people's identity.
It's some people's interpretation of 'patriotism' that sucks - a belief that they are somehow better than another nation - that's what leads to wars. Well, that and politicians.
The ones that will benefit from the Euro are the ones that Exprt, as it will provide a level playing field on which to compete with foreign products. The ones that will lose out are mainly the ones with inflated prices that are much more expensive than their European counterparts.. ie computer games, cd's, dvd's, clothes, etc.
I understand all what you have just said, I am doing Business Economics in UNI next year...
I was just wondering in general what UK companies think of joining the Euro...
I was just wondering in general what UK companies think of joining the Euro...
A strong currency is not the same as a good currency.. Strong means that for one unit of currency you will get more than one unit of most other currencies. For example one pound will get around 10 Francs, 250 pesetas, etc. So if your currency is strong it means that prices are different. To put this in perspective a strong pound is good for tourists because you get more pesetas to your pound, so if you go abroad you can buy more. Suppose I am French, I get less pesetas for my Franc which means that I can buy less. So a strong pound is good for tourists.
However, if you are a company who wants to seel stuff abroad then you'll see things differently. If you makes a product that costs £1, for example, that translates into 10 Francs. Suppose the Pound gets stronger, suddenly your product costs 11 Francs. As Price is a big factor in determining what we buy a French person will be less inclined to buy your product because there is a cheaper alternative. If the pound gets weaker though, so you only get 5 francs to your pound, then suddenly your product has fallen in price to 5 francs in France and more people will buy it.
Exchange rates, ie whether the pound is strong or weak, are determined by interest rates. Basically if the Bank of England decides to increase interest rates then internationally the pound is an attractive place to put your money. Why? An interest rate is the amount of money you earn on top of the money you put into a bank. If I save £100 at an interest rate of 1% per year, then I will end the year with £101. Basically if the interest rate goes up people will start converting their money into pounds to take advantage of the higher interest rate. The effect of this is to push up the "price" of a pound in terms of other currencies. Essentially, the pound becomes stronger because it is worth more in terms of the other currencies.
Problem is interest rates are used to regulate inflation. Many people have mortgages on their houses and have to pay a monthly repayment on it. A mortgage is a loan used to buy a house. This repayment is dependant on the rate of interest. So if I stick up interest rates in general I ensure that there is less money for people to spend. This means that Demand in the economy as a whole falls, and so inflation is avoided. (inflation is when the general level of prices rises). There are two types of inflation, cost push and demand pull. Cost push is where workers want more money, which means the price of goods goes up to account for wages increases (this form is pretty much a thing of the past now), and demand pull inflation which is where there is not enough supply to satisfy demand. If you want an example look to the petrol crisis. Supplies were running out, so what did the people with petrol do? They jacked the prices up because demand had outstripped supply. Imagine that happening in the economy as a whole.
So when an interest rate decision is made, it affects both ou trade position and our level of inflation. That's why people are validly (Patriotism is a lame reason for not wanting the euro) worried about the Euro. Personally I don't see it as a problem, but that's a personal belief.
However, if you are a company who wants to seel stuff abroad then you'll see things differently. If you makes a product that costs £1, for example, that translates into 10 Francs. Suppose the Pound gets stronger, suddenly your product costs 11 Francs. As Price is a big factor in determining what we buy a French person will be less inclined to buy your product because there is a cheaper alternative. If the pound gets weaker though, so you only get 5 francs to your pound, then suddenly your product has fallen in price to 5 francs in France and more people will buy it.
Exchange rates, ie whether the pound is strong or weak, are determined by interest rates. Basically if the Bank of England decides to increase interest rates then internationally the pound is an attractive place to put your money. Why? An interest rate is the amount of money you earn on top of the money you put into a bank. If I save £100 at an interest rate of 1% per year, then I will end the year with £101. Basically if the interest rate goes up people will start converting their money into pounds to take advantage of the higher interest rate. The effect of this is to push up the "price" of a pound in terms of other currencies. Essentially, the pound becomes stronger because it is worth more in terms of the other currencies.
Problem is interest rates are used to regulate inflation. Many people have mortgages on their houses and have to pay a monthly repayment on it. A mortgage is a loan used to buy a house. This repayment is dependant on the rate of interest. So if I stick up interest rates in general I ensure that there is less money for people to spend. This means that Demand in the economy as a whole falls, and so inflation is avoided. (inflation is when the general level of prices rises). There are two types of inflation, cost push and demand pull. Cost push is where workers want more money, which means the price of goods goes up to account for wages increases (this form is pretty much a thing of the past now), and demand pull inflation which is where there is not enough supply to satisfy demand. If you want an example look to the petrol crisis. Supplies were running out, so what did the people with petrol do? They jacked the prices up because demand had outstripped supply. Imagine that happening in the economy as a whole.
So when an interest rate decision is made, it affects both ou trade position and our level of inflation. That's why people are validly (Patriotism is a lame reason for not wanting the euro) worried about the Euro. Personally I don't see it as a problem, but that's a personal belief.
I really dont know enough to comment.
mistehappy, you seem to know alot.
How will it affect UK companies in general if we join?
Is it true not many countries trade with us becasue of the strong pound? would jpining the euro increase exports? in turn...decrease imports? One thing though...we aint the biggest power in Europe. The DM was the strongest currency in Europe wasnt it?
mistehappy, you seem to know alot.
How will it affect UK companies in general if we join?
Is it true not many countries trade with us becasue of the strong pound? would jpining the euro increase exports? in turn...decrease imports? One thing though...we aint the biggest power in Europe. The DM was the strongest currency in Europe wasnt it?
Misconception:
Euro means taxes go to Europe
It doesn't. The Euro doesn't not mean that Europe suddenly becomes a state within its own right. Taxes still go to the government and the chancellor still decides where to allocate spending. All that remains the same. The Euro just means that these transactions would be carried out in that currency.
The European central bank will make decisions based on the performance of countries within the Euro-group. In that way the wekaer conuntries won't affect it because they won't be allowed into the Euro until their own economy is in order. Admittedly the varying levels of unemployment are a problem, but ultimately interest rates are only a short-term way of stopping inflation. That's where people get worried about the Euro. They say that a centrally-set rate won't account for British needs. Well, it won't really need to, in the long term, countries which improve Aggregate Supply, ie the capacity to produce, will regulate their own inflation. The interest rate is a short term tweaking tool. Within the Euro its role will probably change to one of regulating the exchange rate.
I hope that's cleared up things a little.
Euro means taxes go to Europe
It doesn't. The Euro doesn't not mean that Europe suddenly becomes a state within its own right. Taxes still go to the government and the chancellor still decides where to allocate spending. All that remains the same. The Euro just means that these transactions would be carried out in that currency.
The European central bank will make decisions based on the performance of countries within the Euro-group. In that way the wekaer conuntries won't affect it because they won't be allowed into the Euro until their own economy is in order. Admittedly the varying levels of unemployment are a problem, but ultimately interest rates are only a short-term way of stopping inflation. That's where people get worried about the Euro. They say that a centrally-set rate won't account for British needs. Well, it won't really need to, in the long term, countries which improve Aggregate Supply, ie the capacity to produce, will regulate their own inflation. The interest rate is a short term tweaking tool. Within the Euro its role will probably change to one of regulating the exchange rate.
I hope that's cleared up things a little.
No, we shouldn't take the Euro on over here. That's not me being patriotic at all, I have my reasons will I'll try and explain. Firstly, I'm going to say I'm no financial expert, so what I say may be wrong, but it seems to make sense to me.
If anyone knows enough, please correct my mistakes.
Firstly, financially, we are in the top 4 countries in Europe. This means that we have acceptable unemployment, acceptable interest rates and generally, although not in a perfect financial situation, are pretty well off
However, countries that are also joining the Euro, such as Spain, have something like 40% unemployment. Why should my tax go toward paying for some Spanish person? Charity begins at home, and all that. Let's sort out our problems before helping out everyone else, eh? The national rail system is crap, so I would prefer my tax to go towards sorting that out. At least I can see where my money is going.
Also, the central bank will have to make changes to stuff like interest rates for the benefit of the whole of Europe. With all these east European countries that want to join, who aren't in a financially sound way, the changes will not doubt help to get them up to an acceptable level.
Which means that changes could be detrimental to us. If the central bank people are in a meeting and they say "Right, we can make this change, which will help out 8 countries, and stuff two countries. Right, lets make the change."
We are more likely to be stuffed than helped because of our position to begin with. The Euro is trying to average out Europe, so we're all the same. Well, good idea in principle. But when you average anything, the higher "values" (which is us), are always higher than the average, so we will lose out.
I hope that (kind of) makes sense.
If anyone knows enough, please correct my mistakes.
Firstly, financially, we are in the top 4 countries in Europe. This means that we have acceptable unemployment, acceptable interest rates and generally, although not in a perfect financial situation, are pretty well off
However, countries that are also joining the Euro, such as Spain, have something like 40% unemployment. Why should my tax go toward paying for some Spanish person? Charity begins at home, and all that. Let's sort out our problems before helping out everyone else, eh? The national rail system is crap, so I would prefer my tax to go towards sorting that out. At least I can see where my money is going.
Also, the central bank will have to make changes to stuff like interest rates for the benefit of the whole of Europe. With all these east European countries that want to join, who aren't in a financially sound way, the changes will not doubt help to get them up to an acceptable level.
Which means that changes could be detrimental to us. If the central bank people are in a meeting and they say "Right, we can make this change, which will help out 8 countries, and stuff two countries. Right, lets make the change."
We are more likely to be stuffed than helped because of our position to begin with. The Euro is trying to average out Europe, so we're all the same. Well, good idea in principle. But when you average anything, the higher "values" (which is us), are always higher than the average, so we will lose out.
I hope that (kind of) makes sense.
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