Economic and Monetary Union

Part of the debate – in the House of Commons at 5:43 pm on 24th January 1991.

Alert me about debates like this

Photo of Ian Taylor Ian Taylor , Esher 5:43 pm, 24th January 1991

I am concerned about the right hon. Gentleman's analysis, which seems to regard devaluation as a beneficial act. Devaluation is required only if a country has not been pursuing domestic policies that improve the competitiveness of its industry. It is clear that currency depreciation does not improve the competitive position of a country in relation to those countries with which it trades extensively. The old Phillips curve analysis is out of the window.