... degree of national economic sovereignty, while the Maastricht plan appears to offer Single European Currency members very little national economic sovereignty. Analyses the Exchange Rate Mechanism (ERM), to assess what national economic sovereignty EU countries currently enjoy. It becomes apparent...

... to model the relationship between core and periphery explicitly; for example with floating exchange rates, or an ERM‐type regime, or a fixed or adjustable unilateral peg, and include some specification of the fiscal flows between the two blocs. Aggregate supply in each country would then depend...

...Colin Turner The recent crisis in the ERM has meant EMU can no longer proceed along the lines proposed in the Maastricht Treaty. Proposes that a two or even multi‐speed EMU should emerge from the crisis. This would be based on a “hardcore” which would form the basis for exchange rate/macro policy...