It is working to an inflation target and this arrangement should reduce the likelihood of large-scale fluctuations of sterling vis-à-vis the euro. It is vitally important that the credibility of the euro is established immediately. To achieve this the new currency must be supported by a solid economic background and political consensus.
This is something that we all do in all aspects of our lives – whether we are running a business, pursuing a career, or looking after a family. As we make plans in pursuit of a goal, we take into account what could go wrong – and what can be done to mitigate that.