The European Monetary System in Perspective
Economics, Vol. 15, No. 4, pp. 104-105, December 1979
Posted: 11 Jan 2010 Last revised: 27 Oct 2010
Date Written: December 1, 1979
The conclusion of this analysis is that the obligations of membership of the European Monetary system are not as uncomplicated as they might appear. Each member agrees to stabilise the value of its currency relative to the value of the European Currency Unit (ECU), a basket of members’ currencies, but the value of the ECU is not independent of the values of its constituent currencies.
Keywords: European Monetary System, exchange rates
JEL Classification: O24, E42
Suggested Citation: Suggested Citation