Sunday, 14 December 2008

That falling pound

The solution is contained within the problem.

However, it was estimated that half of the visitors to London's West End were savvy continental shoppers who had travelled to Britain hoping to make a saving by cashing in on a weak pound.

Jace Tyrrell from the NWEC said: "Just as we used to head to New York to grab a bargain, we're now seeing foreign visitors, particularly Europeans, flocking to London. The strong euro against the pound means Europeans are flocking to London to grab a bargain - with prices about 25 to 30% down on Paris and Milan.

"This week Fortnum and Mason's cafe was 70% European visitors and our market across the West End is 50% tourists."

The pound falls, our exports become cheaper for foreigners to buy and thus economic activity here is boosted.

This is how floating exchange rates work and are supposed to work, the solution is built into hte very system. Absolutely the last thing we want to do is give up this self-correcting mechanism by joining the euro.

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