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...

This paper analyses the functioning of the European Exchange Rate Mechanism (ERM). To that end, we apply duration models to estimate an eclectic specification that enables us to explicitly incorporated political and institutional factors into the explanation of European exchange rate policies....

This paper is devoted to the past, present, and future of the European Monetary System (EMS). After examining its background, the paper reviews the structure and operation of the EMS, as well as the theoretical framework used to explain exchange-rate movements inside official fluctuation bands....

This paper examines the regime changes in the European Exchange Rate Mechanism (ERM), by applying the duration model approach to quarterly data of eight currencies participating in the ERM, covering the complete European Monetary System (EMS) history. We first make use of the nonparametric...