Bundesbank buys time for the bloodied franc

Article Abstract:

Foreign exchange speculation threatens the European exchange rate mechanism (ERM) because the Bundesbank should reduce interest rates to ease the situation. This would sever the link between the franc and the mark, on which integration is based. The Banque de France has been support-buying but devaluation is ruled out. US Treasury Secretary Nicholas Brady called on the Group of Seven to control the markets. Former Bundesbank president Karl-Otto Pohl advised an immediate currency union.

Europe, Foreign exchange, Foreign exchange rates, Monetary unions, Banque de France, Franc (France), Deutsche Bundesbank, Mark (Germany)

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Economists press case for leadership

Article Abstract:

At a meeting organised by the Independent newspaper leading economists called for government action on Britain's structural problems and an increase in national output. The speakers doubted that Britain was recovering from the recession. Education and training should be improved and increased to strengthen the manufacturing industry and lessen unemployment. Economists recommended investment in Britain's infrastructure and borrowing from the banking sector to avoid a slump.

United Kingdom, Recessions

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Speculators humiliate ERM

Article Abstract:

European politicians blamed Germany for the collapse of the European exchange rate mechanism (ERM) on Aug 02, 1993. A meeting of finance ministers and central bank governors allowed all currencies except the German mark and the Dutch guilder to fluctuate by up to 15%. This gives member states flexibility to reduce their interest rates, which may trigger further falls in weak ERM currencies. However, it should help an end to the recession and reduction in unemployment.

Political aspects, Money

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