27 - John Major's Government, 1990-97 Flashcards
What currency did the ERM tie European currencies to? What was the value of Sterling when tied to this currency?
Deutschmark
DM 2.95
What did many people feel about the value of the Deutschmark?
It was overpriced
What currency did many international bankers sell in September 1992? What happened to its value?
Sterling
It fell
What did Chancellor Norman Lamont raise in order to keep the Sterling’s exchange rate with DM at 2.95? What were they raised to?
Interest rates
15%
How much, in value, did Chancellor Lamont sell British foreign reserves for? Why was this insufficient on “Black Wednesday”?
£30 billion
Britain withdrew from the ERM
How did Black Wednesday seem in the short-term for Britain? What was undermined?
Disastrous
International credibility
Who in Major’s government became even more disillusioned with EU membership? What did many people lose faith in the government’s handling of?
Eurosceptics
Economy
How did Black Wednesday play out in the long-term? What began to recover?
It was an advantage
Sterling
What was Sterling valued at in DM by 1996? What was this higher than?
DM 3
ERM days
Whose was Britain’s economic growth higher than?
EU growth
What 2 crises did Major’s government face issues over?
EU membership
Sleaze
Whose legacy did Major develop as his main task? Who did he want to unite?
Thatcher’s legacy
Tories
What 2 Thatcherite policies was a consensus created under in the Tory Party?
Free-market
Individualism
Who did Major continue to provide support for in society?
The vulnerable
What 2 areas did spending increase in the budget?
Healthcare
Education