| Author: | Vehrkamp, R. |
| Title: | Die Lehren der Waehrungskrise = Lessons drawn from the monetery crisis |
| Journal: | Wirtschaftsdienst
1992 : DEC, VOL. 72:12, p. 639-645 |
| Index terms: | MONETARY SYSTEM MONETARY POLICY MONETARY INTEGRATION FINANCIAL CRISES |
| Language: | ger |
| Abstract: | The recent crisis of the European Monetary System is described and analyzed. It is shown that the most important causes of the crisis lie in the economic characteristics of the member states. The differences in their economic potential came to light through the speculative foreign exchange operations. Arguments are presented that irrational speculations demand interventions on foreign exchange markets. Irrationality occurs when expectations concerning the rate of exchange differ significantly from divergence of inflation in the member states. The most important objectives are to prevent erroneous decisions on capital allocation and lessen the instability due to speculation. |
SCIMA