The Triumph of the ERM

The decision was made quickly, three days before the Tory Party's conference. It was decided to sign up at the exchange rate of the time which was a bit high considering Britain's slowing economy. A million people lost their jobs and while the ERM reduced inflation there was no sign of German style prosperity that people had been promised. Most European economies needed lower interest rates to promote economic growth but instead they were sacrificing jobs and prosperity on the altar of ERM.