The paper presents an overview of several studies about the credibility of the European Monetary System (EMS). These studies compare different credibility indicators in terms of their ability to detect exchange rate crises in a target zone. Marginal credibility seems to be the best measure for...

This paper provides some new evidence on the credibility of the Exchange Rate Mechanism (ERM) of the European Monetary System (EMS). We differ from previous studies in the literature in three main respects. First, our main contribution is the use of several credibility indicators, some of which...

The paper presents an overview of several studies about the credibility of the European Monetary System (EMS). These studies compare different credibility indicators in terms of their ability to detect exchange rate crises in a target zone. Marginal credibility seems to be the best measure for...

In this paper we study the credibility of the Spanish peseta since its entry in the European Monetary System (EMS) in June of 1989. To do this we estimate the conditional elasticities and the risk premia of the Spanish peseta and the German Mark. The index thus obtained shows less confidence in...