Abstracts » Business

The ERM and the real shape of the UK recession

Article Abstract:

The 1991 recession in the UK is the result of the government's policy that kept interest rates high as a means to cool off the over-heated economy of the south of England. The inclusion of the pound sterling into the European Monetary System's exchange rate mechanism (ERM) has lead to the pound's recovery and the lowering of interest rates. Nominal interest rates have decreased faster than has inflation. The recession likely will continue through 1991 and will not end until 1992. Membership in the ERM has lead to a high real exchange rate policy, which will hurt the international competitiveness of UK industry, particularly manufacturers.

Analysis, Pound (United Kingdom), European Monetary System, Great Britain

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Prepare for the pinch

Article Abstract:

The UK economy is slowing down, not only because of its links with the slowing US economy, but also because of other factors. The UK corporate sector is in a weakened state, with a very slow profit growth, and the growth in consumption has been greater than the growth in disposable income, which has resulted in a fall in savings.

Economic development

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Optimistic about mortgages

Article Abstract:

The state of the housing and mortgage lending market in the UK is analysed. The impact of a slight slowdown in the homes market, a fall in the value of the pound sterling and the removal of home ownership subsidies is examined.

Bank of England, Forecasts and trends, Economic policy, Interest rates, Mortgages, House buying, Home buying, Home ownership

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