The question of the impact of EMU on the stability of the transatlantic exchange rate raises the more general question of whether the exchange rate is a useful adjustment instrument or an additional source of shocks. The end of Bretton Woods system was motivated by the hope that flexible exchange rates would isolate the economies from shocks coming form their partners', and help them to face domestic shocks.
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Paper provided by CEPII research center in its series Working Papers with number
1998-02.
Find related papers by JEL classification: E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy F02 - International Economics - - General - - - International Economic Order; Noneconomic International Organizations;; Economic Integration and Globalization: General F31 - International Economics - - International Finance - - - Foreign Exchange F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
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