Title: European Monetary System - Wikipedia
Headings: European Monetary System
European Monetary System
Contents
History
Background, 1960 to 1971
1972: the Werner Report is published and EEC countries peg their currencies
The EMS is created
Creation of the European Currency Unit
German monetary policy dominates
Changing operating principals and preparing for the Euro
1992 crisis
Criticism
See also
References
Further reading

Content: The second period, from 1987 to 1992, the EMS was more rigid. In 1988, a committee was set up under EEC President Jacques Delors to begin changing the EMS to provide favorable starting conditions for the transition to Economic and Monetary Union (EMU). The Delors plan was a three-stage process that lead to a single European currency under the control of a European Central Bank. 1992 crisis
Further information: Black Wednesday
The year 1990 saw a crisis in the EMS. The European Single Market had been created in 1986 with the main goal of removing control on capital movements. Periodic adjustments raised the value of strong currencies and lowered those of weaker ones, and national interest rates were changed to keep the currencies within a narrow range. In early 1990, the European Monetary System was strained by the differing economic policies and conditions of its members, especially the newly reunified Germany, and Britain, which had initially declined to join, subsequently joining in 1990. The opt-out of Denmark from the EMU in 1992 and exchange rate adjustments of the currencies from weaker countries by the EMS also contributed to the crisis. Speculative attacks on the French franc during the following year led to the Brussels compromise in August 1993 which broadened the fluctuation band from +/-2.25% to +/-15% for all the participating currencies.