Toro
Diamond Member
- Sep 29, 2005
- 108,852
- 47,831
My 'interpretation' of what happened to ordinary British people is not incorrect. It is accurate. They lost their life savings because of what happened. They lost their homes, their pensions, everything. The economy bounced back... but those people's lives were ruined. They are real people, they're aren't statistics or an economy. You should know that.
I don't understand the causal linkage between the Bank of England losing a billion dollars and people being thrown out of work, losing their life savings, etc. CG. The Bank of England doesn't take deposits from individuals so the BoE losing a billion dollars doesn't cause any depositors to lose their life savings. No bank went under because the UK left the ERM. And as much as a billion dollars sounds a like a lot, for a central bank, it's not crippling. I can't remember the exact amount, but I thought the balance sheet of the BoE was something like £10-£12 billion at the time. (Today it is £250 billion.) I don't know how a lower pound causes people to lose their homes or their jobs when it makes the British economy more competitive. A lower currency is a good thing for the economy when monetary policy is too tight because it is stimulative.