Abstract
When the European Economic and Monetary Union was founded, the established European Monetary System (EMS) was not completely abandoned. Still, demand for stable monetary relations between the member states of the monetary union and other EU members who had not joined the EMU required an institutional setting. The European Council decided to provide a mechanism of exchange rate interventions to respond to this demand. In a resolution of 1997, the rules of the EMS were adapted to the changed task and the system continued to exist as Exchange Rate Mechanism II (ERM II) with a changed structure and a changed scope.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Further Reading
Angeloni, Ignazio et al. (2005): Economic and Monetary Integration of the New Member States — Helping to Chart the Route, ECB Occasional Paper Series No. 36, September
Backe, Peter et al. (2004): The Acceding Countries’ Strategies Towards ERM II and the Adoption of the Euro: An Analytical Review, ECB Occasional Paper Series No. 10, February
De Grauwe, Paul and Gunther Schnabl (2005): Nominal Versus Real Convergence — EMU Entry Scenarios for the New Member States, Kyklos, Vol. 58, No. 4, pp. 537–55
European Central Bank (2004): The Acceding Countries’ Economies on the Threshold of the European Union, Monthly Bulletin, February, pp. 45–56
Gibson, Heather D. and Euclid Tsakalotos (2001): ERM-II: Problems for the ‘outs’ and their relationship with the ‘ins’, in: European Monetary Integration. Past, Present and Future, edited by Eric J. Pentecost and Andre van Poeck. Cheltenham: Edward Elgar, pp. 155–84
Hölscher, Jens and Mariusz Jarmuzek (2005): Overvalued or Undervalued Euroland Entry?, Post-Communist Economies, Vol. 17, No. 2, pp. 235–50
Krugman, Paul R. (1991): Target Zones and Exchange Rate Dynamics, The Quarterly Journal of Economics, Vol. CVI. Issue 3, pp. 669–82
McKinnon, Ronald and Gunther Schnabl (2006): China’s Ex-change Rate and International Adjustment in Wages, Prices and Interest Rates: Japan Dèjá Vu?, CESifo Economic Studies, Vol. 52, No. 2, pp. 276–303
Author information
Authors and Affiliations
Copyright information
© 2007 Horst Tomann
About this chapter
Cite this chapter
Tomann, H. (2007). The New European Monetary System. In: Monetary Integration in Europe. Studies in Economic Transition. Palgrave Macmillan, London. https://doi.org/10.1057/9780230288621_8
Download citation
DOI: https://doi.org/10.1057/9780230288621_8
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-28511-2
Online ISBN: 978-0-230-28862-1
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)