The crises suffered in 1992/93 by the old EMS with its narrow exchange rate bands were largely due to the fact that the central banks' unlimited spot intervention obligations held little credibility for speculators. How can a credible exchange rate guarantee be achieved by improving the...

The system of so-called Divergence Indicators in the European Monetary System puts pressure on the monetary authorities to consult before the intervention points are reached in the foreign exchange markets. Under integration aspects this arrangement marks an advance, but it also carries risks...

The European Monetary System (EMS) has now been in operation for about one year. Dr. Burgard explains the main elements of the system and the problems still awaiting solution.

The European Monetary System (EMS) has, so far, proved to be a success. The regional approach to the promotion of monetary stability, in terms of both more predictable exchange rates and a reduction in inflation, is the only option available to Europe as attempts to create a new international...

A very lively debate has now developed about the future of European monetary policy. Dr. Peter Bofinger analyses the arguments for and against the promotion of the ECU as a parallel currency.

The growing use of the European Currency Unit (ECU) in private transactions is often expected to produce a decisive impetus towards monetary integration within Europe. On the other hand, critics warn of the monetary risks of increased private use of the ECU. What are the opportunities and risks...

The decisions of the EC conference in Nyborg last autumn were designed to consolidate and expand monetary integration in Europe. What degree of integration have the many years of effort achieved? What are the prospects for the future of the European Monetary System?

The European Monetary System was ten years old on 13th March. The following three contributions assess the progress made so far and the outlook for the future.