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...

Since the widening of the fluctuation bands in the European Monetary System in 1993 the previous core countries have pursued a "D-Mark shadowing". The characteristic feature of this shadowing is the participating countries' willingness to voluntarily return to, and maintain, the old exchange...

In the debate about the world monetary order there is agreement that greater stability in international currency relationships would be desirable. Could a system of fixed exchange rates between the currencies of the major industrial countries put an end to the present instability? What would be...