Imported or Home Grown? The 1992-3 EMS Crisis
Using newly assembled data on foreign exchange market intervention, we construct a daily index of exchange market pressure during the 1992-3 crisis in the European Monetary System. Using this index, we pinpoint when and where the crisis was most severe. Our analysis focuses on a neglected factor in the crisis: the role of the weak dollar in intra-EMS tensions. We provide new evidence of the contribution of a falling dollar-Deutschmark exchange rate to pressure on EMS currencies.

Link to paper: cepr.org/active/publications/discussion_papers/dp.php?dpno=15340
Date: 23 February 2021, 17:00 (Tuesday, 6th week, Hilary 2021)
Venue: Held on Zoom
Speaker: Barry Eichengreen (UC Berkeley)
Organising department: Department of Economics
Part of: Economic and Social History Seminar
Booking required?: Not required
Audience: Members of the University only
Editor: Melis Clark