Economic Stats 1990-1997 Flashcards
Was was the ERM
The European Exchange Rate Mechanism (ERM) was an attempt to stabilise exchange rates promotion financial stability
When did Britain join the ERM and at what rate
October 1990
DM2.95- seen as high
How did the Government attempt to keep the pound in the ERM and at what cost
Raising interest rates from 10% to 12% then again to 15% in one day
Spent £30 billion buying Sterling
Cost £3.4 billion to taxpayers
When was Black Wednesday
16th September 1992
Why did some people believing crashing out the ERM was positive
Some believed that it set foundation for low-inflation progress of the following decade
By 1996- exchange rate DM 3
UK economic growth 1995-2005 2.7%, Eurozone 2%
How did the UK economy grow between 1995-2005 and how does this compare to the Eurozone
UK- 2.7%
Eurozone- 2%
How did GDP change in the third quarter of 1990
Fell 1.1%
When was there a slight recession
Early 1990
How did unemployment change between 1990 and 1993
1990- 7%
1993- 11%
How did unemployment change between 1992-1997
Fell by over 1 million
Give examples of privatisation under Major
Coal 1994
British rail 1994
Cardiff Airport 1995
Economic modernisation under Major
Relaxation of Sunday trading hours- Sunday trading act 1994
Grew use of Private Finance Initiatives (PFIs) to fund public projects
Opening of the Channel Tunnel in 1994