Date: 2023
Type: Book
The making of the European Monetary Union : 30 years since the ERM crisis
London : CEPR Press, 2023
CORSETTI, Giancarlo, HALE, Galina, WEDER DI MAURO, Beatrice (editor/s), CORSETTI, Giancarlo, HALE, Galina, WEDER DI MAURO, Beatrice, The making of the European Monetary Union : 30 years since the ERM crisis, London : CEPR Press, 2023
- https://hdl.handle.net/1814/75435
Retrieved from Cadmus, EUI Research Repository
September 2022 marked the thirtieth anniversary of the Exchange Rate Mechanism (ERM) crisis, a seismic event which shook the continent and caused a severe recession to spread rapidly across European economies. To mark the occasion, CEPR organised, in collaboration with the Pierre Werner Chair at the EUI, a two-part webinar to reflect on the potential lessons from the crisis. These insightful discussions led to the creation of this eBook, which brings together eminent scholars and CEPR researchers who witnessed first-hand the fallout, both economic and political, of countries in the European Union. Many of the contributors have since been involved in managing, designing and debating the making of the European monetary system over the last three decades. The eBook discusses the origins of the crisis and frames it within a broader European historical and political perspective. It considers the underlying causes – German reunification, the struggle for monetary cooperation, the instability of a fixed exchange rate regime under capital mobility – which ultimately led to the breakdown of a flawed system. From disaster to revival, the eBook explains why the crisis was such a watershed moment for European economic policy formation and traces the growth and subsequent construction of a more robust European monetary system. It highlights how the trauma of the ERM crisis may have been the impulse needed to reinforce the ultimate adoption of a single, common currency in the form of the euro. In the following decades, the eBook shows how lessons from the crisis have remained pertinent, influencing theories of currency crisis and the development of instruments and institutions able to adequately respond to subsequent financial instability and debt crises. The final section reflects on the need for changes to further strengthen the institutional setup.
Table of Contents:
-- Part 1: From Bretton Woods to the ERM
-- 1. Thirty years after the ERM crisis
-- 2. Why is the European currency and financial crisis of the 1990s relevant today?
-- 3. A small currency in the ERM zone of monetary instability
-- 4. The European Monetary System crisis of 1992
-- Part 2: 1992 – Ground Zero
-- 5. The ERM crisis and the UK: Black or White Wednesday?
-- 6. The ERM crisis: A teachable episode for international macro
-- 7. The backdrop of the ERM crisis
-- 8. Italy and the crisis of the European Monetary System
-- Part 3: A decade of optimism
-- 9. From 1999 (and before) to 2007: A decade of optimism or a lost decade?
-- 10. One good reason we were optimistic: The rise of inflation targeting and the
demise of fixed exchange rate crises
-- Part 4: A decade of crisis in the euro area
-- 11. The end of euro area crises?
-- 12. A decade of crisis in the euro area: How can one reconcile price stability with a monetary backstop for government debt?
-- 13. When Europe catches a cold, the rest of the world sneezes: Global spillovers of the euro crises
-- 14. Thirty years since the ERM crisis: The beginning of the end
-- 15. Lessons from the European Monetary System Crisis for European Monetary Union
-- Part 5: The next decade
-- 16. Thirty years on, new frontiers for Europe’s monetary cooperation
-- 17. The architecture of the euro: Prospects for the next decade
-- 18. Future challenges to European sovereign debt markets
Additional information:
Published online: 20 February 2023
Cadmus permanent link: https://hdl.handle.net/1814/75435
ISBN: 9781912179688; 9781912179687
External link: https://cepr.org/publications/books-and-reports/making-european-monetary-union-30-years-erm-crisis
Publisher: CEPR Press
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