This paper highlights that the EMU transition process itself can pose challenges to individual accession countries and draws policy implications for ERM II. Differences in financial market development and international liabilities underscore the risks and benefits of ERM II, and may lead to...

In the past years central banks of major Western industrialised countries have repeatedly attempted to change the trend of the US-Dollar rate by means of intervention in the foreign exchange markets. Our authors analyse the objectives, effects and chances of success of such exchange market...