Realigning Interests: Crisis and Credibility in European Monetary Integration

In This Review

Realigning Interests: Crisis and Credibility in European Monetary Integration

By Michele Chang
Palgrave Macmillan, 2004
224 pp. $55.00

This short book, an outgrowth of a dissertation, focuses on the political dimension of the European Monetary System (EMS). Introduced by eight countries in 1979, the EMS terminated in 1999 with the introduction of the euro, although a variant has been revived for Denmark, Sweden, and the ten new EU member states. Special attention is paid to the exchange-rate commitments, the domestic factors that influenced exchange-rate realignments between 1979 and 1987, and the financial crisis and breakdown of the EMS in 1992. Italy, Germany, and especially France get the heaviest treatment. Europeans sought exchange-rate credibility by joining a formal international agreement (first the EMS, then the Maastricht Treaty). Given the support for pan-European cooperation by many parties across the political spectrum (excluding the communists in France and Italy), traditional left-right partisan politics played less role in exchange-rate policy than might have been thought. But political disagreements on the wisdom of Maastricht, especially after the negative Danish referendum cast doubt on its viability, played a big role, as did macroeconomic policy dilemmas within the largest countries, France and Germany.

More Reviews on Economic, Social, and Environmental From This Issue

Browse All Capsule Reviews

Related Articles

This site uses cookies to improve your user experience. Click here to learn more.