Lord Wolfson, chief executive of fashion chain Next, put up £250,000 for the Wolfson Economics Prize in November 2011. The aim of the competition was to ask economists around the world to produce a workable solution to the following question:
“If member states leave the Economic and Monetary Union, what is the best way for the economic process to be managed to provide the soundest foundation for the future growth and prosperity of the current membership?”
Why is the question important? In the design of EMU no mechanism was created for any member to leave. The aim of the prize was to suggest a solution to this problem.
Roger Bootle and a team from Capital Economics were declared winners of the prize on Thursday. The winning entry is HERE.