Which of the following produced a valuable lesson about exchange-rate stability and target-zone arrangements?
A)European Monetary System
B)European Community
C)European Common Market
D)European Union

Question

Quizplus · Accepted Answer

The European Monetary System (EMS) produced a valuable lesson about exchange-rate stability and target-zone arrangements. The EMS was created to stabilize exchange rates among European countries and establish a European currency called the ECU. However, the system faced challenges during the 1990s, leading to its eventual collapse. This highlighted the difficulties of maintaining a fixed exchange rate system and the limitations of target-zone arrangements.

Which of the Following Produced a Valuable Lesson About Exchange-Rate