To What Extent Do You Agree with the View That the Uk Economy Would Benefit If the Euro Were to Be Adopted at Some Point in the Future
The most controversial issue is that the European Central Bank (ECB) will take over monetary policy if the UK were to join the 17-countries strong zone. The problem with this is the …show more content…
Furthermore, by adopting the same currency as 17 other countries, the already strong British Labour market would attract more immigration from other Eurozone states to push growth and to increase efficiency in the manufacturing of goods and services in the UK. This is shown through the second diagram (PPF graph) that shows that as more skilled employment is available to choose from there is an shift from point A to point B showing the output of consumer goods as well as capital goods, which could lead to attract capital inflows from outside of the Eurozone and strengthen trade relations there.
The best example of this is trade with the US, which could be strongly emphasized if the UK distanced itself more from the rest of the EU.