Living in a fantasy world
There have been a number of prominent people who this week have made remarkably silly statements. First there was Richard Branson's claim that " The UK would be better off in the Eurozone. " The Virgin founder told the BBC that "If we were part of the euro right now, our currency would be a lot cheaper,” and “Great Britain would be doing that much better in trading in Europe.” he added that “Because the pound is a lot stronger than the euro, it makes it more difficult for us.” Branson is a great businessman but would be the first to admit that he is not a politician. His statement that it would be easier to trade in Europe if our currency had been dragged down like that of the Eurozone is true so far as it goes, but unfortunately for his argument this is very far from being the whole story. It causes problems if your currency is too high or too low. Too high makes it hard to sell abroad: too low pushes up your costs and leads to inflation. Britain i...