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Business
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| Number of pages / Number of words: |
3 / 632 |
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If Labour is re-elected, it may reassess the tests once more, though the debate on the European Constitution has recently upstaged that on the euro.
Significance
What is the significance of the five economic tests and the government's assessments of them?
The tests are, I think, significant in the recent history of UK government for two principal reasons...
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First, they are a sign of the rise of economic analysis in policymaking. Previous decisions to join exchange rate regimes, such as the Bretton Woods system, did not appear to be preceded, either internally or externally, by such comprehensive assessments. In effect, the five economic tests seem to give the government's economists, particularly in the Treasury, a veto on UK membership of the euro...
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