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- W1841006250 abstract "This study intends to examine the effects of external economic developments on the trade relations and inflation performance of the countries participating in the Exchange-Rate Mechanism (ERM) of the European Monetary System (EMS). The direction of the overall impact on the system of the external factors considered is difficult to assess. On the one hand, the oil shock of 1979–80 and the subsequent dollar appreciation increased inflation in the ERM countries and probably accentuated inflation differentials, thus undermining exchange-rate cohesion. On the other hand, the large real appreciation of most non-ERM currencies vis-a-vis those of the ERM, and the strong recovery of the US economy in the period 1983–5 sustained the growth of economic activity in Europe and may also have contributed to the stability of the exchange-rate system. In this study, we concentrate on this latter aspect, which has not received sufficient attention in the literature on the EMS, and is becoming even more important now since the direction of its development has dramatically reversed." @default.
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- W1841006250 date "1988-10-06" @default.
- W1841006250 modified "2023-10-10" @default.
- W1841006250 title "Economic growth and exchange rates in the European Monetary System: their trade effects in a changing external environment" @default.
- W1841006250 doi "https://doi.org/10.1017/cbo9780511628535.008" @default.
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