Skip to main content

Exiting the EU?

Three former Chancellors of the Exchequer have been calling for the UK to exit the EU - Lord Lawson (story here), Lord Lamont (story here), and Lord Healey (story here). Add these calls to the electoral pressure from UKIP, and one can foresee the Conservatives being forced to offer an in-out referendum to the UK electorate.

The ongoing euro crisis is also fueling anti-EU sentiment across Europe, with political tensions between member states mounting and the Franco-German relationship under severe strain. Surprisingly, Oskar Lafontaine, the German finance minister who launched the euro and was described by The Sun in 1998 as the most dangerous man in Europe (click here), has recently called for its break up before tensions and economies within Europe deteriorate even more (story here). The euro could be the undoing of the EU project.    

Popular posts from this blog

The Failure of Herstatt Bank

As an undergraduate, I was taught about the failure of Herstatt Bank in 1974 and Herstatt risk. This bank was only the 35th largest bank in Germany at the time so why would anyone be interested in studying its failure? Herstatt failed because of its involvement in risky foreign exchange business. When it closed its doors on 26 June 1974, counterparty banks (mainly in New York) had not received dollars due to them because of time-zone differences - this is known as settlement risk. The cross-jurisdictional implications of its failure resulted in the Bank for International Settlements setting up the Basel Committee on Banking Supervision and Herstatt's failure was a key reason for the establishment of real-time gross settlements systems, which ensures that payments between two banks are executed in real time. The Bank of England's Ben Norman has an interesting post on Herstatt over at the Bank's new blog ( Bank Underground ). As well as giving an excellent overview of

Boom and Bust: A Global History of Financial Bubbles

Boom and Bust: A Global History of Financial Bubbles, co-authored with my colleague Will Quinn , is forthcoming in August. It is published by Cambridge University Press and is available for pre-order at Amazon , Barnes and Noble , Waterstones and Cambridge University Press . 

The Great Depression

Marginal Revolution University has a great video on the Great Depression.