| Summary: | This thesis presents six essays relating to various aspects of the workings of the Exchange Rate Mechanism (ERM) of the European Monetary System (EMS), an adjustable-peg exchange rate regime that has been in operation in Europe since 1979. The essays follow its development, from its inception in 1979, to its near collapse in 1992, and its current prospects in the context of economic and monetary union. The essays focus on several aspects of the EMS, notably volatility of exchange rates, offshore interest rates and forward exchange rates, the target zone model, time-series analysis of exchange rate changes, and how the EMS fits in with current plans for economic and monetary union in Europe.
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