Limiting Exchange Rate Flexibility: the
European Monetary System and Monetary Union, MIT Press, Cambridge, MA.
Papademos, eds., The
European Monetary System in the 1990s, Longman, London, 1990.
Wyplosz, "Speculative Attacks on Pegged Exchange Rates: An Empirical Exploration with Special Reference to the
European Monetary System" in Economic Policy, October 1995.
Soon after the Treaty of Rome to establish the European Economic Community had been signed in 1957, Monnet asked two of his close collaborators to design a
European monetary system.(9) That treaty had focused on trade and trade-related powers, but Monnet saw monetary union as a necessary further step toward federation.
Therefore, the
European monetary system is basically a kind of "snake" as far as exchange rate arrangements are concerned.
(London: Allen & Unwin, 1993); and Tommasso Padoa-Schioppa, "The
European Monetary System: A Long-Term View," in The
European Monetary System, ed.
This rush was fueled by the stability of the
European Monetary System (EMS), the convergence of both long- and short-term interest rates, and the apparent development of an increasingly integrated European capital market.
The safest way to budget in Europe is in one of the currencies in the
European Monetary System (EMS), better known as the snake.
Others include the ongoing debate to move quickly toward creating a
European monetary system and a single European currency and the closing months of the current round of GATT talks.
It accepts that Stage One of the Delors proposals will go ahead, including full participation by the UK in the
European Monetary System. But it argues against Steps Two and Three, preferring an `evolutionary approach which allows currencies to compete to provide the non-inflationary anchor in the
European Monetary System', and which `could evolve into a system of more or less fixed exchange rates'.
Shortly thereafter, the Chancellor (again with Giscard) gave birth to the
European Monetary System that ultimately spawned the euro, the most important currency union in history.