The German Bundis Bak

British policy makers wanted to tie the value of the pound to the german deuchmarker, a strong, stable country with cantwiter. The problem was not long after britain joined the r m german reunification hapend, west and east germany were reunited. And as the german government was going to be spending a lot of money, the german bundis bak started raising interest rates. We had to follow them raising interest rates as well. What we ended of getting was a very nasty down turn in the housing market. That was really the first time we saw negative equity on a large scale. As a result, the conservatives go ash