Letter: Backing euro

Richard Bray
Thursday 05 November 1998 19:02 EST
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Sir: John Phillips (letter, 4 November) asserts that, "in the medium to long term the EMU is bound to fail", on the basis that "the only mechanism for a natural improvement" in a national slump is currency devaluation.

How did economies cope during the fixed exchange rate years of Bretton Woods (1940s to 1970s)? These were the most prosperous years for a century for most developed nations which were part of the currency system - including Britain.

The sooner we can get away from sweeping assertions which are just not borne out by history or basic economics, and those against EMU face the real advantages in lower interest rates and inflation, greater stability and better planning, the better.

Richard Bray

London W5

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