Britain's 1992 recession is probably the result of:
A) the struggle to reconcile monetary and fiscal policy.
B) the adherence to the ERM, which required Britain to raise interest rates to maintain exchange parity.
C) high unemployment rates, which are a product of the generous welfare system.
D) poor planning for the conversion to the euro.

Question

Quizplus · Accepted Answer

The adherence to the ERM required Britain to maintain exchange parity which led to the raising of interest rates, causing a significant downturn in the economy.

Britain's 1992 Recession Is Probably the Result Of