Abstract
A number of factors influence the value of a currency compared with another. These factors change in relative importance over time. They include the supply and demand of the currency in world foreign exchange markets, the extent and nature of official controls on movements of money in or out of a country, government policy and the possible existence of international agreements on foreign exchange rates. An example of this last factor was the Bretton Woods agreement on fixed parities which survived from 1947 to 1971. Another is the European Monetary System (EMS), or more specifically the Exchange Rate Mechanism (ERM) which is part of it.
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© 1996 S. F. Goodman
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Goodman, S.F. (1996). Money. In: The European Union. Economics Today. Palgrave, London. https://doi.org/10.1007/978-1-349-14094-7_7
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DOI: https://doi.org/10.1007/978-1-349-14094-7_7
Publisher Name: Palgrave, London
Print ISBN: 978-0-333-66266-3
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