Some Empirical Findings on Differences between EMS and Non-EMS Regimes: Implications for Currency Blocs

Substitution of permanently fixed exchange rates for the gold standard brings Keynes's statement up to date. Many economists, and others, now advocate the establishment within the European Community (EC) of a monetary and economic union based on rigidly fixed exchange rates, complete freedom of capital movements, and the absence of barriers to trade and to the movement of goods and labor across national boundaries.