Britains love affair with the euro (web exercise). Even though Britain is a member of the European

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Britain’s love affair with the euro (web exercise). Even though Britain is a member of the European Union, it opted not to join the euro-zone in 1998. Acrimonious debate within the British political sphere has raged ever since.

a. Compare Britain’s macroeconomic performance with the euro-zone in terms of economic growth, unemployment, inflation, budget deficit/surplus, and balance of payments’ current account.

b. Extend your comparison to Sweden and Denmark, which also refused to join the single currency.

c. Compare interest rates in Britain versus the euro-zone. Would Britain have benefited from joining the euro-zone? How and why?

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