The basic worldwide financial safety net architecture provides for a system of similar institutions: a lender of last resort, deposit insurance, and prudential regulation. In countries whose banking systems suffer seriously from negative capital positions and overbanking, such as in some Latin...

Skeptics have long believed that the EMU faces a dangerous period in Stage III when the 'legacy' currencies will still be in circulation. The issue of whether the EMU could collapse arises from whether a country can extricate itself from the treaty. I will look briefly at some of the legal...

This chapter discusses the operation and collapse of fixed exchange rate regimes. It reports recent research contributions to the understanding of the dynamics of a fixed exchange rate system. These contributions can be placed readily into two categories research on target zones and research on...