Substance and semantics in ERM II

When the Maastricht treaty was drafted, ten of the twelve members of the EU adhered to the Exchange Rate Mechanism (ERM I) of the European Monetary System1. Under that regime, each member had to keep its exchange rate within a narrow band by buying its currency in the foreign exchange market to keep it from depreciating by more than 2.25% vis-a-vis the strongest currency. Furthermore, the strong-currency country had to sell its currency in the foreign exchange market or, alternatively, lend

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.