Year: 1981
Author: Vaubel, Roland
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 101 (1981), Iss. 1 : pp. 1–23
Abstract
The European Currency Unit (ECU) makes adjustments of central rates more difficult and is unsuitable as a divergence indicator because it operates, if at all, asymmetrically in an arbitrary way. The indeterminacy of intramarginal intervention currencies increases monetary uncertainty and monetary divergencies. The use of the ECU to denominate the EC credit facilities creates inflation incentives. The ECU cannot solve the n-th currency problem nor become a sufficiently attractive parallel currency. - Experience with the "snake" shows that the central rates of the D-Mark were hardly ever adjusted without considerable foreign exchange purchases preceding but that the "snake" interventions did not usually deflect central bank money from its target path.
Journal Article Details
Publisher Name: Global Science Press
Language: Multiple languages
DOI: https://doi.org/10.3790/schm.101.1.1
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 101 (1981), Iss. 1 : pp. 1–23
Published online: 1981-01
AMS Subject Headings: Duncker & Humblot
Copyright: COPYRIGHT: © Global Science Press
Pages: 23
Author Details
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