EMS
by Maria Fatakhova
1. Arrangements
1.1. Joined management of exchange rate realignments
1.1.1. changes should be jointly decided by all members
1.2. parity grid
1.2.1. european system, no reference to $ or gold. Fully symmetric, responsibility was explicitly shared by both countries
1.3. Mutual support
1.3.1. The efforts to keep the stable exchange rates were made by each party
1.4. ECU
1.4.1. basket of all EMS country currencies
1.4.2. Used for all official transactions
2. Assessment
2.1. A flexible and cohesive arrangement
3. EMS 1
3.1. 1st version
3.1.1. plan A: to dedicate monetary policies to the exchange pegs
3.1.2. B: to accept lasting divergences in inflation and adjust the exchange rates as frequently as needed
3.2. 2nd version
3.2.1. 1986-1992
3.3. crisis
3.3.1. 1.a surge of inflation in Germany
3.3.2. speculative attacks