The extreme widening of the exchange rate margins last summer has transformed the EMS from a multilateral fixed rate system into a system of unilateral exchange rate pegging. Professor Neumann characterises the current state of the EMS, outlines the major defects of the system and makes some...

The following analysis of the 1992/93 crisis of the European Monetary System finds that the unfolding of the single market dynamics will make European Monetary Union a difficult stage to achieve. Further monetary integration is only feasible if full employment and sustained growth are achieved...

Interpretations of the causes and implications of the EMS crisis of mid-1993 vary considerably. The following article offers a critical analysis of the most common arguments and draws conclusions for future policy.

Since the widening of the fluctuation bands in the European Monetary System in 1993 the previous core countries have pursued a "D-Mark shadowing". The characteristic feature of this shadowing is the participating countries' willingness to voluntarily return to, and maintain, the old exchange...

The decisions of the EC conference in Nyborg last autumn were designed to consolidate and expand monetary integration in Europe. What degree of integration have the many years of effort achieved? What are the prospects for the future of the European Monetary System?

The crises suffered in 1992/93 by the old EMS with its narrow exchange rate bands were largely due to the fact that the central banks' unlimited spot intervention obligations held little credibility for speculators. How can a credible exchange rate guarantee be achieved by improving the...

While the Maastricht Treaty envisages a single European Currency as part of the Economic and Monetary Union, it contains no detailed instructions as to the practical arrangements for its introduction. Despite prolonged discussions and negotiations at various levels, no consensus has so far been...