Abstract

1. Introduction 2. Exchange rate stability in Europe: a historical perspective 3. The unfolding of the 1992-3 ERM crisis 4. Financial markets and ERM credibility 5. Modelling currency crisis 6. A center-periphery model 7. Unilateral pegs and escape clauses: the role of domestic credibility 8. Policy coordination and currency crisis 9. What causes the system to crumble 10. Rebuilding the system: what next?

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