Major - economic

Question 1

When did Britain join the ERM?

Answer 1

October 1990

Question 2

Why did Britian join the ERM?

Answer 2

Hoped that hitching the pound to the Deutschmark, Britian could replicate the economic prosperity Germany had undergone

Question 3

When and what was Black Wednesday?

Answer 3

16 September 1992 - Britain crashed out of the ERM

Question 4

How did Major and Lamont attempt to stay in the ERM?

Answer 4

Raised interest rates during the day from 10% to 12% and then to 15% and authorised the spending of billions of pounds in an attempt to keep the pound within the range allowed by ERM

Question 5

What were the short term consequences of Black Wednesday?

Answer 5

The UK’s two year membership of the ERM was suspended and second interest rate reversed

Question 6

What were the long term positive consequences of Black Wednesday?

Answer 6

Following Britain’s departure from the ERM, inflation has been rather benign since - the ERM may have helped set a low-inflation foundation for the subsequent decade

Question 7

What were the long term negative consequences of Black Wednesday?

Answer 7

The ERM did prolong the British slump, by preventing UK rates from being cut to the levels justified by the UK economy

Question 8

When was BSE identified?

Answer 8

1986

Question 9

How did BSE develop in 1988?

Answer 9

BSE identified as able to be passed from animals to humans.

Question 10

How did the BSE crisis develop in 1990?

Answer 10

British beef was declared as ‘safe’ to eat

Question 11

When and what was the peak of BSE cases?

Answer 11

1992 - 37,280 cases

Question 12

How did BSE develop in 1995

Answer 12

First CJD death - Stephen Churchill, 19. Government scientists reject a connection between vCJD and BSE - government introduces tighter controls on farmers’ record keeping and prohibits the removal of brains and eyes and spinal cord in slaughterhouse

Question 13

How did BSE develop in 1996?

Answer 13

BSE-CJD link - 20th March - Conservative government announces that a probable link between BSE and vCJD has been established.

Question 14

What was the summary of the Philips Report findings?

Answer 14

The Government was well intentioned but far too secretive. Greater and earlier openness might have caused problems, not least for the farming industry, but the long term consequences would probably have been less damaging.