Willy\’s been one of those who has been insisting, for years, that Britain really must join the euro. It\’s essential, must be done, tragedy will follow if we don\’t.
Today we get his analysis of what is wrong with the British economy.
interacting with the devastating impact of a still overvalued exchange rate.
Oh, so we should have a lower exchange rate, should we? The one thing that membership of the euro would prevent us from having?
in part because the still high exchange rate makes our relative wage costs high
Yes, he is saying that we need to devalue the currency.
We could, for example, buy foreign assets, so lowering the exchange rate.
Leave aside whether we should devalue the currency or not, leave aside whether we should or should have joined the euro or not. Just note the inconsistency with arguing for both: having a fixed exchange rate and devaluing the currency.
And to think this man is a Governor of the LSE and the Master of an Oxbridge College. Clearly the ability to do logic….hell, the ability to think…..is not a requirement to be either.