Managing exchange markets in the EMS with free capital

Authors

  • L. BINI SMAGHI
  • S. MICOSSI

DOI:

https://doi.org/10.13133/2037-3643/11120

Keywords:

EMS, exchange rate management, monetary policy, domestic policy

Abstract

This paper discusses the EMS in a number of sections. Section 1 examines the potential effects of full capital mobility on the sovereignty of national policy making. Section 2 looks at the history of exchange rate management (ERM) within the system to date, and Section 3 considers the role of monetary policy within the ERM. Sections 4 and 5 discuss the future viability of the system in terms of recent changes. In conclusion (Section 6) it is noted that the pressures of short-term capital flows, given free capital, will entail a further loss of monetary autonomy for member countries.


JEL: F36, E52, F32

Downloads

Published

2013-11-23

How to Cite

BINI SMAGHI, L., & MICOSSI, S. (2013). Managing exchange markets in the EMS with free capital. PSL Quarterly Review, 42(171). https://doi.org/10.13133/2037-3643/11120

Issue

Vol. 42 No. 171 (1989)

Section

Editorial

License

 
 
Licenza Creative Commons
 
All material in this website and every article published by the Review are licensed under a Creative Commons Attribution - Non commercial - No derivates 4.0 International license.
The authors who publish on this journal maintain all rights on their works without any restrictions.