Dollar, Dinar, and EMS: A Brief Report on the Exchange Rate of the Schilling

The European Monetary System (EMS) was founded 10 years ago. Austrian monetary policy has traditionally pursued goals very similar to those of the EMS. In line with the hard-currency option, the effective exchange rate of the Schilling has gained in nominal as well as in real terms. The value of the Schilling has dropped only against the Japanese Yen and the Swiss Franc. The Schilling has proved to be the "hardest EMS currency" as measured against an imaginary ECU exchange rate.