But wasn't part of the reason it was the pre-Euro EMS because it failed to hold together against the stresses of divergent FXR and domestic policy monetary policy objectives?

Unless there is an effective mechanism to share the burden of adjustment between surplus and deficit countries, we seem to retain the same tensions. while broadening the system increases the number of divergent domestic and FRX policies in competition.


I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.