Reviews the attempts to introduce greater exchange rate stability into the European Union, culminating in the 1992 crisis in the Exchange Rate Mechanism, and the UK’s withdrawal. Outlines the Maastricht Treaty proposals for monetary union by 1999. Finally, reviews the arguments for and against...

Considers how membership of a Single European Currency would affect Single European Currency members’ national economic sovereignty. First defines concisely national economic sovereignty. Explores economic life in the Single European Currency. A picture of a converged Single European Currency...

In the Euro zone unlike monetary policy, fiscal policy has to be coordinated with the limitations imposed by the Stability and Growth pact. Continuous violations of the Stability and Growth Pact by the powerful members of the European Union such as Germany and France have stymied the progress...

This paper reexamines the relationship between budget deficits and exchange rates by applying Hakkio’s (1996) model to seven Asian countries and eight Euro‐currency countries over the years from 1951 to 2001. Applying the Time‐Series Cross‐Section Regression with the Seemingly Unrelated...

This study compares the effectiveness of money market hedges and options hedges for both payables and receivables denominated in British pounds, German marks, Japanese yen and the Swiss franc. Data on interest rates, exchange rates, and options contracts were obtained from public sources for two...

In late July 1993, the European Monetary System threatened to unravel. The Exchange Rate Mechanism (ERM), which ties European Community members′ currencies together, faced the possibility of collapse as the French franc and other currencies pushed perilously close to the permissible bounds of...

This paper investigates whether the investment strategies of multinational enterprises (MNEs) have changed as a result of the 1997 financial crisis in Korea. Estimation results using balanced panel data indicate that the investment decisions of global MNEs seem to have changed following the...

An impassioned debate has been on in the academic and policy circles regarding the undervaluation of the renminbi (RMB) yuan. This issue has emerged as one of the most contentious and thought‐provoking in the discipline of international finance. That it is undervalued is widely acknowledged....