Some of the toughest issues we have faced as a country in recent decades have required genuinely new or lateral thinking - the product of Ministers and civil servants working closely together to deliver shared goals - including putting in place the UKs new monetary framework after the 1992 ERM crisis
; responding to the financial crisis of 2008/2009, not least through the highly successful London G20 Summit, while trying to prevent Britains falling into another Great Depression; and subsequently tackling the twin challenges of low productivity and weak public finances.
George Soros made a billion dollars betting against the Bank of England during the sterling - ERM crisis
on Black Wednesday, September 1992.
Most, if not all, other major financial market crises I have been through have involved current account deficits: the Plaza Accord in 1985 through to the 1987 Wall Street crash, the ERM crisis
from 1989 through 1992, the Mexican tequila crisis in 1994, the Asian crisis in 1997-98, the Russia crisis in 1998.
As with the ERM crisis
, the expectation, especially in the eurozone, is that the authorities will eventually act to shore up the indebted countries in a way that will make it too risky for markets to put on pressure.
I recall the dotcom crashes of a few years ago, the early 90s slump and the ERM crisis
, the year-long miners dispute of 1984-85, even as far back as the Winter of Discontent exactly 30 years ago.
Eventually an embarrassed Bank of England was forced by the government to step in and rescue Northern Rock, but not before British commentators began drawing comparisons between King's handling of the credit crisis in 2007 with former Chancellor of the Exchequer Norman Lamont's handling of the ERM crisis
in 1992, which contributed to the exit of Sterling from the European exchange rate system.
DURING the 1992 ERM crisis
, Paxo asked Tory Treasury boss Norman Lamont: "Do you like being Chancellor?
The factors that led to the 1992-1993 ERM crisis
are classified into two categories.
After the ERM crisis
, the Conservatives lost this reputation and were unable to recover it by the time of the election in June 1997.
In 1975, just as with the ERM crisis
of 1993, although EMU looked dead it nevertheless staggered on.
The central argument we shall put forward to explain this conundrum is that the objective economic record of the Major government was remarkably strong, but nevertheless the Conservative reputation for sound economic management was fatally undermined by the ERM crisis
in September 1992.
Those doubts came to a head with the ERM crisis
in September, 1992.