This paper reviews the central features of France’s capital controls in the 70's and 80's and strives to assess their ability, in the context of various exchange rate mechanisms, to regulate capital flows and to stabilize the exchange rate while allowing France to preserve a measure of...

This paper reviews the economic and monetary impacts of the creation of the 1979 European Monetary System on the participating countries and shows that they did not meet all the required theoretical criteria for a successful monetary integration process. Despite this handicap, the 1979 monetary...

The question whether the European Monetary System has brought about a reduction in the variability of its members' exchange rates is not a trivial issue since central rates are adjustable and bilateral exchange rates are allowed to move freely within fairly large margins. In this paper I have...

This paper proposes a synthetic divergence indicator retracing the influence of domestic and external imbalances for each G5 country on its currency position. This index happens to be equal to the weighted sum of domestic demand pressures and current account disequilibrium, with the weights...