Wednesday, 28 January 2009

A history lesson for Gordon Brown

In yesterday's PMQs Gordon Brown came this exchange:
"Q10. [251635] Andrew Selous (South-West Bedfordshire) (Con): If all our problems come from America and the rest of the world, why is the pound falling so sharply against the dollar and the euro?

The Prime Minister: If I could just say—[Hon. Members: “Answer!”] The experience of targeting the pound and the exchange rate has not been particularly beneficial for this country. Targeting the Deutschmark and the exchange rate mechanism, and then membership of the ERM, did not work. So we are not targeting the pound, but inflation. That is the Bank of England’s role, and I believe that it is best way to bring about a recovery in the economy. I caution the hon. Gentleman and his party against any policies that would target sterling."

I may be wrong but I seem to remember that in 1992 Gordon Brown was in favour of the UK entering the ERM. In fact I seem to remember him wanting to be in the narrower 2.5% band. Now whether he supported this position because he truly believed in it, or because he was backing up his party leader, John Smith, or because it was a way of exposing Conservative party splits on Europe, I do not know. Maybe someone could ask Gordon Brown to explain his position in 1992 on the ERM and what he would have done differently so as to avoid having to exit the ERM.

I get so fed-up with Gordon Brown spewing out Brownies without any fact-checking from opposition MPs, commentators or journalists.

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