The Disadvantage of tying One's Hands: The Rise and Fall of the Europeanisation of British Monetary Policy

Buller, Jim. (2003) The Disadvantage of tying One's Hands: The Rise and Fall of the Europeanisation of British Monetary Policy. In: UNSPECIFIED, Sheffield, UK.

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Abstract

[From the Introduction]. This paper attempts to do three things. It begins by charting the rise and fall of the Europeanisation of British monetary policy over the last two decades or so. It goes on to ask why the Europeanisation of British monetary policy (in the form of ERM membership) became so controversial in the 1990s. Finally, it concludes by asking whether there is a connection between the events of Black Wednesday and present Treasury reluctance to join the euro. The main argument developed below is that Europeanisation took place initially as a method of depoliticising British economic management (taking the politics out of policy-making). However, it became controversial because it was criticised for locking policy-makers into a course of action which appeared to set them at odds with the demands of many of the electorate. Put another way, objections to Europeanisation in this case were as much to do with democracy (or a particular understanding of democracy) rather than sovereignty. The Blair Government has continued to resist membership of the euro because it too perceived the institutions of the eurozone to be too rigid and remote from political interference. To join is to once again risk being tied to a policy which may threaten the legitimacy of the party in office.

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