Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

City: System failure

Jeremy Warner
Saturday 31 July 1993 18:02 EDT
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

SO MUCH has been written and said about the demise of the ERM that there's scarcely anything left to add. It's been an even ruder awakening for the French than for Britain, but finally they too have begun to realise that you cannot hope to keep a fixed exchange rate system alive when the economic interests of member currencies have begun to diverge as much as they have in Europe over the past couple of years. No amount of political pride or central bank intervention can match the power of the markets once they decide enough is enough.

For Britain's fragile economic recovery, the end of the ERM can only be good news, bringing as it should a round of interest rate cuts throughout Europe and an easing of recessionary pressures. The London stock market would probably have been heading for higher ground regardless of what happened to the ERM, but I suspect we can now expect to see the FT-SE 100 testing the 3,000 barrier much more quickly.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in