Beyond prospective accountancy : reassessing the case for British membership of the single European currency comparatively
Hay, Colin, Smith, Nicola Jo-Anne and Watson, Matthew. (2006) Beyond prospective accountancy : reassessing the case for British membership of the single European currency comparatively. British Journal of Politics and International Relations, Vol.8 (No.1). pp. 101-121. ISSN 1369-1481
WRAP_Watson_bjpir(eurooct05).pdf - Requires a PDF viewer such as GSview, Xpdf or Adobe Acrobat Reader
Official URL: http://dx.doi.org/10.1111/j.1467-856X.2006.00225.x
The fact that Britain will, at most, be a late signatory to the single European currency means that the strategic deliberations it faces in deciding whether to enter EMU are rather different to those of earlier entrants. However, this crucial point is lost in almost all discussion of the subject. To date, the academic debate has been dominated by what we term 'prospective accountancy', in which a series of abstract counterfactuals ostensibly inform a stylised cost–benefit analysis. This article moves beyond such an approach by combining conjectures about the specificities of the British case with a concrete analysis of the experiences of the Eurozone member whose economy appears most closely to resemble Britain's: namely, Ireland. The comparative dimension of our work facilitates more empirically-based analysis of the merits and demerits of British entry into EMU. Yet, it is important not to lose sight of the limits of an exclusively comparative approach, for the British growth model is qualitatively different to that of other European Union economies. British growth since the early 1990s has been consumption led, and this in turn has been fuelled to a considerable degree by the release of equity from the housing market. The likely impact of EMU on the British economy will be determined to a significant extent, then, by its effect upon this key catalyst of British growth. Sadly, no retrospective comparison can inform such an assessment.
|Item Type:||Journal Article|
|Subjects:||H Social Sciences > HG Finance|
|Divisions:||Faculty of Social Sciences > Politics and International Studies|
|Library of Congress Subject Headings (LCSH):||Economic and Monetary Union, Money -- European Union countries, European currency unit, Great Britain -- Economic conditions|
|Journal or Publication Title:||British Journal of Politics and International Relations|
|Publisher:||Wiley-Blackwell Publishing Ltd.|
|Official Date:||February 2006|
|Page Range:||pp. 101-121|
|Access rights to Published version:||Open Access|
Baker, T. J., Fitz Gerald, J. and Honohan, P. (1996) Economic Implications for Ireland of EMU (Dublin: Economic and Social Research Institute).
Barry, F. (2001) 'Fiscal policy in EMU', in (eds), European Monetary Integration (Aldershot: Edward Elgar).
Bradley, J. (2000) 'The Irish economy in comparative perspective', in (eds), Bust to Boom? The Irish Experience of Growth and Inequality (Dublin: Institute of Public Administration), 4–26.
Buckle, M. and Thompson, J. (2004) The UK Financial System (4th edn) (Manchester: Manchester University Press).
Council of Mortgage Lenders (2005) UK Housing Review 2004/2005 (London: Council of Mortgage Lenders).
CSO (1999) External Trade (Cork: Central Statistical Office).
CSO (2000) External Trade (Cork: Central Statistical Office).
CSO (2003) Foreign Direct Investment 2001 and 2002 (Cork: Central Statistical Office).
CSO (2005) External Trade (Cork: Central Statistical Office).
Daly, M. and Yeates, N. (2003) 'Common origins, different paths: Adaptation and change in social security in Britain and Ireland', Policy & Politics, 31: 1, 85–97. Links
Department of Finance (2003) Economic Review and Outlook (Dublin: The Stationery Office).
Drazen, A. (2000) Political Economy in Macroeconomics (Princeton, NJ: Princeton University Press).
Forfás (2004) End of Year Statement 2003 (Dublin: Forfás).
Görg, H. and Ruane, F. (2000) 'European integration and peripherality: Lessons from the Irish experience', World Economy, 23: 3, 413–415. Links
Hall, P. A. and Franzese, R. (1998) 'Mixed signals: Central Bank independence, co-ordinated wage bargaining and European Monetary Union', International Organization, 52: 3, 205–236. Links
Hay, C. (2003) 'Macroeconomic policy coordination and membership of the Single European Currency: Another case of British exceptionalism?', Political Quarterly, 74: 1, 91–100. Links
IBEC (1999) Ireland's Transition to the Euro (Dublin: Irish Business and Employers' Confederation).
IBEC (2000) EMU—The Implications for Ireland (Dublin: Irish Business and Employers' Confederation).
Leddin, A. and Walsh, B. (1998) The Macro-Economy of Ireland (Dublin: Gill & Macmillan).
Martin, A. and Ross, G. (eds) (2004) Euros and Europeans: Monetary Integration and the European Model of Society (Cambridge: Cambridge University Press).
OECD (2001) Economic Surveys: Ireland 2000–2001 (Paris: OECD).
Persson, T. and Tabellini, G. (1990) Macroeconomic Policy, Credibility and Politics (London: Harwood).
Smith, N. J. (2005) Showcasing Globalisation? The Political Economy of the Irish Republic (Manchester: Manchester University Press).
Stevenson, A., Muscatelli, V. and Gregory, M. (1988) Macroeconomic Theory and Stabilisation Policy (London: Philip Allan).
UNCTAD (2003) World Investment Report 2003: Trends and Determinants (Geneva: United Nations).
UNCTAD (2004) WID Country Profile: Ireland (Geneva: United Nations).
Watson, M. (2003) 'The politics of inflation management', Political Quarterly, 74: 3, 285–297.
Actions (login required)
Downloads per month over past year