Sterling and the Euro

Abstract

The question of whether and when sterling should join Economic and Monetary Union is likely to be one of the key battlegrounds in the next election campaign. In this article, Erik Britton and Scott Livermore argue that there is no clear economic case in favour of sterling's entry to EMU. However, if as the government asserts – the political will to join exists, steps could be taken now, adjusting the mix of macroeconomic policy, to ensure that convergence was likely shortly after the next election.