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Imported or Home Grown? The 1992-3 EMS Crisis

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  • Eichengreen, Barry
  • Naef, Alain

Abstract

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.

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  • Eichengreen, Barry & Naef, Alain, 2020. "Imported or Home Grown? The 1992-3 EMS Crisis," CEPR Discussion Papers 15340, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:15340
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    More about this item

    JEL classification:

    • F0 - International Economics - - General
    • F3 - International Economics - - International Finance
    • F31 - International Economics - - International Finance - - - Foreign Exchange

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