Great Britain is the 2nd largest economy within the European Union yet does not utilize the Euro, opting instead to retain the pound sterling as its national currency.
How has this decision affected the country's ability to combat the "Great Recession"?
(For example, has the retention of the pound helped or hurt the British economy?)
There are a few different points with Great Britain not using the euro. When we look at the EU, there are 27 countries that are members. When we have many countries all using the same currencies, it becomes problematic because those countries are all under the control of the central bank. Changes that are made through various monetary policies to help during recessionary periods and other times would affect all countries with that currency. If the U.S. and Canada used the same currency under the authority of a central bank, changes in the U.S. economy would be rectified through ...
This solution discusses how Great Britain's decision to not adopt the Euro has affected the country and their ability to combat the Great Recession being experienced in Europe.