The authors argue clearly and convincingly in this book that the debt crisis which has plagued the world economy for the past ten years is due to the inherent fragility of financial markets. Governments, financial institutions and borrowers, including developing countries, have simply expected too much from these markets. In a world of volatile interest rates, exchange rates and uncertain government policy, it is virtually impossible for financial institutions to effectively distinguish fundamental shifts in economic activity from random shocks.

The objective of the Single European Act is to establish a European market without barriers, thereby enabling the free movement of goods, persons, services and capital. To achieve this end the European Commission has put forward some 300 directives to be implemented by 1 January 1993. The contributors to this volume offer a critical evaluation of the likely effects of these measures for Europe as a whole and for the UK economy, in particular.

The authors argue clearly and convincingly in this book that the debt crisis which has plagued the world economy for the past ten years is due to the inherent fragility of financial markets. Governments, financial institutions and borrowers, including developing countries, have simply expected too much from these markets. In a world of volatile interest rates, exchange rates and uncertain government policy, it is virtually impossible for financial institutions to effectively distinguish fundamental shifts in economic activity from random shocks.

How competitive is the UK economy? Is it capable of responding successfully to shocks emanating from abroad? The five case studies prepared for this volume identify the main problem areas which currently affect the ability of the UK to sustain a competitive international position.