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The Review of Economics and Statistics Vol. 73 No. 3 1991

Exchange Rates, Policy Convergence, and the European Monetary System

Ronald MacDonald; Mark P. Taylor

Abstract

We analyze the degree of policy convergence of EMS member countries relative to that of some non-EMS countries. Interestingly, we find convergence for the nominal and real exchange rates and money supplies of the EMS members but not for the non-EMS countries. We also provide some evidence to support the "German leadership hypothesis" in the context of intra-EMS monetary policy convergence.

DOI
10.2307/2109585
Volume
73
Issue
3
Pages
553
Sources
crossref openalex

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