Monetary Policy In The European Monetary System: A Critical Appraisal (european And Transatlantic Studies)

**Monetary Policy in the European Monetary Systems** (EMS) provides the reader with a critical assessment of the EMS operation, focusing on key issues like intervention in money and foreign exchange markets and credibility of EMS exchange rate bands. The book also reopens the discussion on the "EMS discipline-credibility hypothesis" and the notion of "New EMS", testing both with an original methodology. The conflict between internal and external objectives is made clear and the empirical results show the choices made by the individual countries and the resulting implications. The book is written with an empirical orientation based on a unifying data description framework. Front Matter....Pages i-x Introduction....Pages 1-3 The origins, design and working of the European Monetary System....Pages 5-11 “Leaning against the wind” in the EMS: Did it work? An analysis of the period from 1979 to 1988....Pages 13-43 “Leaning against the wind” through interest rate management: The EMS in the period from 1979 to 1988....Pages 45-51 Monetary autonomy in the EMS....Pages 53-65 The discipline hypothesis: What role for the EMS?....Pages 67-101 In search of a credible EMS....Pages 103-126 Summary and conclusions....Pages 127-128 Back Matter....Pages 129-147 This text presents a critical assessment of the European Monetary System (EMS) operation, focusing on key issues like intervention in money and foreign exchange markets and the credibility of EMS exchange rate bands. The book also discusses the EMS discipline-credibility hypothesis.