Quote from Martinghoul
On the contrary, my lack of posting is only evidence of me having a life.
Here's a few items, in response to your first post:
1. The problem with the UK is not the household leverage per se, but rather the fact that most mortgages are of the short maturity floating rate variety. This makes them very sensitive to the policy rate fluctuations, unlike, for example, the US or the Danish system.
REPLY ok i agree a bit. it is due to the type of mortgage. however we still have much higher debt ratio for house price than most other eu states e.g. france where they rent.
2. The frameworks used by the ECB and the BoE to manage interest rates are extremely similar, actually. Neither framework includes anything called a 'discount flow window'.
REPLY actually there are different functions in the boe model and the eu i can get the papers. as for the discount flow window it is one of them. here is a boe page with papers including it.
http://search.bankofengland.co.uk/s...heet=default_frontend&site=default_collection
3. What does the proportion of FX trades done in the UK have to do with the existence of pound sterling? Do you know what fraction of these trades actually involve sterling crosses? Do you know what happens to these trades if sterling gets replaced by Euro?
REPLY ok i get to an extent your point here. although i think mine is valid. the pound is seen as a minor reserve currency it has a value due to its perceived strength. this has devalued but is still of value for the uk. some are concerned however the loss of the pound and the use of euro will lose that purchasing power although as i stated in the post this may not be the case and to look at how the euro has gained in value against the pound over the last decade.
4. Where do you get the idea that the quality of life in Italy declined after the introduction of the Euro? I'd argue that Euro was, in many ways, beneficial to Italy as it forced some much needed fiscal consolidation and actually lowered interest rates for Italian borrowers and inflation for consumers.
REPLY i provided a article read it and the others. i suggest you read all of the posts over and again you have miss read them.
Furthermore, in response to your later posts:
5. What possible bearing could the ERM debacle have on today's situation? It was a policy mistake by the government, there was no central bank and the hard target was a market rate.
REPLY it is just evidential as to how the uk had problems fitting into the interest rate parameter last time and if it was down to a governmental mistake then could that not happen again.
Finally, I have absolutely no view on whether it's appropriate for UK to enter the EMU, so pls don't suggest that I am some sort of a Euro fanatic. I just don't like it when you make completely incorrect assertions.
REPLY ok that is exactly what i told him to do read my posts i tell him or her again and again to go to the bruges group website. incidentally i used to be the economic adviser to ukip. i invent things like the interest rate mechanism.
As to the actual answer to the OP's question, the best suggestion, in my view, is to go read the various statements by the UK Independence Party. Their sole raison d'etre is to get the UK as far away as possible from the EU.
REPLY i used to think you knew about the central bank etc but you clearly do not go to the ecb publication page and look up the framework. there are different tools used in the eurozone framework. the paper detailing below.
http://www.ecb.int/pub/pdf/other/gendoc2008en.pdf
google discount flow window.
the fact you do not know that about the discount flow window would indicate you do not know what you are talking about. there was one point when we discussed a similar issue when i thought you knew more than me because you are a bond trader but now i am worried. think about it you work in bonds which relate heavily to the central bank and you did not know about the discount flow window. read the papers i have sent and the last few posts i made.
to be honest i don't want to argue with you but you make very insulting remarks so i am just defending myself. if someone said you do not know what you are talking about without backing it up the way you do you would be peed. think about what you said without knowing what i know or stating points none of your points have any source but mine do. any one here can look them up. but now you have gone to far saying you are an authority when you don't know about something you should.
i can't believe it. really it is just beyond reproach. a bond trader who doesn't understand the central banking system and interest rates which are correlated deeply. seriously look up discount flow window. any one you will laugh at the naivity and ignorance.
i would like to point out i do not like doing this but you attacked me first. p off and bother someone else. don't make an argument unless you back it up and learn about your job.
