Europe in Transition: The NYU European Studies Series: Crisis and Credibility in European Monetary Integration

Chang, M.

Why do currency crises happen? What conditions set the stage for such a crisis? How severe will it be? When will it happen? This book answers these questions, illustrating the points by examining the exchange rate realignments of the European Monetary System. It also shows how balancing the tension between domestic and international politics plays a vital part in a government's willingness to uphold its exchange rate commitments. Michele Chang pays particular attention to the role of domestic elections, since these may prevent governments from credibly committing to a fixed exchange rate and from responding quickly and coherently to market instability, thus encouraging speculation.

Details

Published by: Palgrave Macmillan

Publication Date: 2004-07-06

Format: Paperback

ISBN-13: 9781349528028

DOI: 10.1057/9781403980175

Dimensions: 203cm x127cm

Pages: 200