Publisher's Synopsis
The speculative crises of 1992-93, which shook the EMS during Europe's worst postwar recession, left in their wake a series of questions about the monetary future of Europe, exchange rate behaviour and exchange rate policy. This book explores these questions from the varying standpoints of economic theory, history and empirical study.;The book looks at recent theoretical models of exchange rate target zones, exchange rate crises and central bank credibility. It also examines the empirical evidence on misalignment, the efficiency of central bank interventions by the G3, measures of exchange rate risk under wide official bands, the exchange rate crises in 1992-93 and central bank behvaiour in the EMS. The whole range of international monetary experience since the breakdown of Bretton Woods in 1971 receives attention.
