The Exchange Rate Mechanism was introduced by the European Economic Community in 1979.
It fixes the Exchange rates between currencies to a specific margin.
But how does it do this?
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1 Answer
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How the system operated changed over time.
This Bank of England paper does a review of the literature. Rather than give an inaccurate summary, I will let you look through it.
answered Apr 17, 2019 at 21:47