 Who Needs Bands? Exchange Rate Policy Before EmuNo 1995/043, IMF Working Papers from International Monetary Fund Abstract: Two issues are discussed. The first is which countries might benefit from entry into EMU before the millennium. Germany and her immediate neighbors appear the most likely to gain; however, our knowledge is too uncertain to say whether all, some, or no countries would reap net economic benefits. The second issue is how to avoid exchange rate instability in the transition to EMU. Experience from earlier exchange rate regimes suggests that an early announcement the parities at which different currencies would enter EMU could reduce such instability if governments were willing to accept the required limitations on domestic policies. Keywords: WP; exchange rate; government; country; European monetary union; currency; private exchange rate market; gold standard; exchange rate peg; inadvisable government policy; exchange rate parity; exchange rate band; government demand; exchange rate tension; Exchange rates; Currencies; Exchange rate arrangements; Exchange rate policy; Conventional peg; Western Europe (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:1995/043 Ordering information: This working paper can be ordered from Access Statistics for this paper More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC. |
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