Chapter 24

Chapter 24 - Chapter 24 Germanys Role in European Monetary...

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Chapter 24: Germany’s Role in European Monetary Union The prospection of re-creating stability through regional agreements: Werner Report: 1969: European Common Market (France, West Germany, Italy, Belgium, Luxembourg, the Netherlands) decided to retain all currencies within a band of plus/minus 2.25 per cent. This system was referred as the “snake”. However many were not able to respect those quotas. March 1979: creation of the European Monetary System: each nation had to maintain its currency between 2.25% = each currency had to fix its value against a single “basket” of currencies, rather than against each other individually. The performance of the EMS: Allowed countries with traditionally disparate domestic monetary practices to create some sort of exchange rate stability: imposed some stability in exchange rates, and still allowed enough freedom for states to pursue their own macroeconomic policies. New step was creating single currency: attempt on Deutschmark Deciding on the Next Step: Monetary Union:
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This note was uploaded on 02/08/2012 for the course POLI 243 taught by Professor Markbrawley during the Winter '09 term at McGill.

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Chapter 24 - Chapter 24 Germanys Role in European Monetary...

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