Publisher's Synopsis
The collapse of the ERM is of major significance to the European Union. Given that the European Union must have a monetary system of some form, it is essential to understand why this collapse took place, in order that a workable system may be developed. Based on research commissioned by the European Parliament, the economists contributing to this volume offer their own explanations, with the use of economic models.;The countries chosen for analysis are those particularly affected by the ERM crisis of September 1992. They fall into three categories. France successfully resisted the attacks on the franc. Ireland, Portugal and Spain devalued (more than once in each case) but remained within the ERM. Italy (after a short-lived devaluation) and the UK left the ERM altogether. Germany, the three Benelux countries and Denmark were not affected in the same way, although Belgium and Denmark have had problems more recently. Collignon's paper on the EMS in Central and Eastern Europe should be of interest for what it may offer as the monetary dimension of EU enlargement. The volume is intended as a reference for academics, policy makers and journalists.
