Economy 'boosted by ERM exit'

News Article - 04 September 2007
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The UK's departure from the European Exchange Rate Mechanism (ERM) in 1992 has actually had a positive effect on the country's economy, new financial accounting research has suggested.

Data from Halifax Financial Services revealed that in the 60 quarters since the so-called Black Wednesday, where £3.4 billion was lost, unprecedented growth has been recorded.

Indeed, low inflation and high levels of stability have provided a platform for fewer interest rate fluctuations and, over the last five years, higher economic growth than all countries in the Organisation for Economic Cooperation and Development, except the US.

Tim Crawford, Halifax Financial Services' economist, commented: "The UK's new-found economic stability is the dream of both the public and policymakers during the turbulent 1970s and 1980s."

On 16th September 1992, when reporting the UK's fall out of the ERM, the BBC notes Conservative MP William Cash as calling the situation a "political shambles".

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