§ Mr. Michael BrownTo ask the Chancellor of the Exchequer what assessment he has made of the net(a) benefits and (b) costs to the United Kingdom economy of sterling's membership of a fixed exchange rate system. [14238]
§ Mrs. Angela KnightThe Chancellor considered carefully the case for joining the new exchange rate mechanism in stage 3 of economic and monetary union linking the euro with non-participating member states, but concluded that the best way to secure lasting exchange rate stability is to achieve low inflation and sound public finances. Hence, the Government have no intention of re-entering sterling into a fixed exchange rate system, such as the new ERM. The Government recognise the value of a stable exchange rate but do not have a target for sterling.