The European Monetary System

  • Edward Nevin


The adjustment of the foreign exchange rates of the Community’s two major members in 1969 had a traumatic effect on the Community. Initially it generated the belief that the Common Agricultural Policy, its alleged corner-stone, had been fundamentally compromised; in fact, the subsequent invention of the tortuous system of Monetary Compensatory Amounts was to prove that this fear was not entirely justified. More generally, however, it very definitely undermined the implicit assumption that the exchange-rate stability enjoyed by the Community since its formation would continue indefinitely. The potential gains from integration in the areas of production and trade based on a large single market were clearly being jeopardised by this instability in the monetary sector.


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Further Reading

  1. Coffey, P., Europe and Money (London: Macmillan, 1977).CrossRefGoogle Scholar
  2. Denton, G., Economic and Monetary Union in Europe (London: Croom Helm, 1975).Google Scholar
  3. European Commission, The ECU, 2nd edn (Luxembourg, 1987).Google Scholar
  4. Levich, R. M. and Sommari va, T., The ECU market: current developments and future prospects (Lexington, Mass.: D. C. Heath and Co., 1987).Google Scholar
  5. Ludlow, P., The Making of the European Monetary System (London: Butterworth, 1982).Google Scholar
  6. Padoa-Schioppa, T., Money, Economic Policy and Europe (Luxembourg: Commission of the European Communities, 1985).Google Scholar
  7. Sumner, M. T. and Zis, G., European Monetary Union (London: Macmillan, 1982).Google Scholar
  8. Tsoukalis, L., The Politics and Economics of European Monetary Integration (London: Allen & Unwin, 1977).Google Scholar
  9. Ypersele, J. van, The European Monetary System (Luxembourg: Commission of the European Communities, 1985).Google Scholar

Copyright information

© Edward Nevin 1990

Authors and Affiliations

  • Edward Nevin
    • 1
  1. 1.University College of SwanseaUK

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