The British Economy After Black Wednesday

Question 1

What happens to Br economy after black Wednesday

Answer 1

-after leaving ERM econ situation started improve with value of pound being dropped

Question 2

What was the impact of the value of the pound being dropped

Answer 2

-this helped Br exporters sell goods + products abroad

Question 3

How did black Wednesday help British exporters

Answer 3

-leaving ERM prevented br having keep high interest rates to protect stability of sterling
-allowed exchange rates float downwards

Question 4

What happened to unemployment after black Wednesday

Answer 4

-unemployment rate slowed with housing market picking up

Question 5

What else was the British economy benefiting from

Answer 5

-the impact of financial deregulation + flexible working practices which the cons introduced 1979

Question 6

What happened to US economy

Answer 6

-coming out of recession
-world trade expanding

Question 7

What was happening with the German economy

Answer 7

-struggling with huge costs of unification
-sluggish growth rates compared with br

Question 8

What were the economic indicators by 1997

Answer 8

-unemployment down
-productivity up with consumer spending + car ownership
-house prices rose + negative equity fell
-business supportive of gov policies

Question 9

Despite this what was missing

Answer 9

-people reluctant give major gov credit for improvements
-‘feel-good factor’ was missing