Abstract
The European Economic Community, starting in 1958, left monetary policy as a national responsibility. Art. 105 and 108 EEC Treaty only weakly restricted monetary autonomy by demanding the member states to treat their economic and exchange rate policy ‘as a matter of common interest’. At the time of the Bretton Woods Monetary Order, exchange rates were fixed to the US-$ with a small bandwidth of +/-1 per cent. EC founding member states agreed to narrow the bandwidth for their currencies to 0.75 per cent — a first small hint of ‘a common interest’.
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© 2014 Karlhans Sauernheimer
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Sauernheimer, K. (2014). Current Account Imbalances in the Eurozone: Causes, Remedies and the Role of the ECB. In: Dăianu, D., Basevi, G., D’Adda, C., Kumar, R. (eds) The Eurozone Crisis and the Future of Europe. International Political Economy Series. Palgrave Macmillan, London. https://doi.org/10.1057/9781137356758_6
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DOI: https://doi.org/10.1057/9781137356758_6
Publisher Name: Palgrave Macmillan, London
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