Thatcher warned Major about exchange rate risks before ERM crisis
by Alan Travis Home affairs editor from on (#3BXE4)
National Archives: private warning came just five weeks into Major's premiership and 20 months before Black Wednesday
Margaret Thatcher privately warned John Major that he was in danger of making a mistake of Churchillian proportions on exchange rate policy and risked pitching the British economy into recession, the cabinet papers reveal.
Her warning to her anointed successor as prime minister came 20 months before "Black Wednesday", when the pound crashed out of the European exchange rate mechanism in September 1992.
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