Abstract
The new European Monetary System is an exchange rate mechanism (ERM II) that particularly addresses Eastern European accession countries who joined the European Union since 2004. By signing the Maastricht Treaty, these countries agreed to adopt the euro in the longer term. The ERM II provides assistance on this way. This chapter firstly describes the choices which are open to new members on their way to the monetary union. Secondly, the main features of ERM II are presented and implications for the credibility of the system are examined. Thirdly, the chapter briefly reports on what strategies were chosen by the new member states to achieve monetary convergence and to prepare for EMU.
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Further Reading
Krugman, Paul R. 1991. Target Zones and Exchange Rate Dynamics. The Quarterly Journal of Economics CVI (3): 669–682.
Polanski, Z. 2016. Monetary Stabilization. In Palgrave Dictionary of Emerging Markets and Transition Economics, ed. J. Hölscher and H. Tomann, 92–111. Basingstoke and New York: Palgrave Macmillan.
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Tomann, H. (2017). The New European Monetary System. In: Monetary Integration in Europe. Studies in Economic Transition. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-59247-3_11
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DOI: https://doi.org/10.1007/978-3-319-59247-3_11
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Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-319-59246-6
Online ISBN: 978-3-319-59247-3
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