Economic Stats 1990-1997 Flashcards

1
Q

Was was the ERM

A

The European Exchange Rate Mechanism (ERM) was an attempt to stabilise exchange rates promotion financial stability

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2
Q

When did Britain join the ERM and at what rate

A

October 1990

DM2.95- seen as high

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3
Q

How did the Government attempt to keep the pound in the ERM and at what cost

A

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

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4
Q

When was Black Wednesday

A

16th September 1992

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5
Q

Why did some people believing crashing out the ERM was positive

A

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%

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6
Q

How did the UK economy grow between 1995-2005 and how does this compare to the Eurozone

A

UK- 2.7%

Eurozone- 2%

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7
Q

How did GDP change in the third quarter of 1990

A

Fell 1.1%

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8
Q

When was there a slight recession

A

Early 1990

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9
Q

How did unemployment change between 1990 and 1993

A

1990- 7%

1993- 11%

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10
Q

How did unemployment change between 1992-1997

A

Fell by over 1 million

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11
Q

Give examples of privatisation under Major

A

Coal 1994
British rail 1994
Cardiff Airport 1995

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12
Q

Economic modernisation under Major

A

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

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