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Original Articles

Speculative attacks or fundamentals? Empirical evidence from some European currencies

Pages 673-675 | Published online: 07 Oct 2010
 

Abstract

The European Monetary System experienced pressure on exchange rates, which led toa devaluation or a subsequent widening of bands of EMS currencies. In this paper the source(s) of pressure on the exchange rate are identified. Currency crises were caused by fundamentals in 1992; however, they were caused by speculation in 1993.

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