ERM crisis in retrospect: What if a European central bank had been in existence before 1992?
Journal
Economic Modelling
Journal Volume
28
Journal Issue
4
Pages
1526-1535
Date Issued
2011
Author(s)
Abstract
This paper explores whether policy coordination or a single monetary policy implemented earlier would have kept the U.K. in the process of European monetary integration. On the basis of the pre-ERM crisis empirics by Douven and Plasmans (1996), a counterfactual game simulation approach is used, and five scenarios are established for comparison with the actual historical records. The final answer is negative. ? 2011 Elsevier B.V.
Subjects
Counterfactual analysis; Currency crisis; European Monetary System
SDGs
Type
journal article