The Irish pound and the ERM : lessons from the September crisis and its aftermath

This paper examines the effects of the EMS crisis of September 1992 on the Irish pound. A review of the Irish experience in the exchange rate mechanism is presented, including an assessment of the extend to which the hard-currency peg pursued after the devaluation of 1986 could be said to have gained credibility for the Irish pound. The behaviour of the Irish interest rates in the aftermath of of sterling's departure form the ERM and the reasons for the protracted attempt to avert a devaluation of the Irish pound are studied. Some implications for progress towards a monetary union in Europe are drawn.A hard copy is available in UCD Library at GEN 330.08 IR/UN