This book investigates the establishment and early operational challenges of the European Monetary System (EMS) during its formative years, 1979-1982. Drawing on the authors' direct involvement and access to key decision-makers, the work analyzes the complex interplay of economic, political, and institutional factors that shaped the EMS. It examines the initial design of the system, the mechanisms for exchange rate management, and the policy responses to early economic shocks, presenting a detailed account of the system's initial successes and inherent difficulties.

The book is regarded as a foundational text for understanding the early years of the European Monetary System, offering an insider's perspective on its creation and initial implementation. Its detailed analysis of the Exchange Rate Mechanism and the policy responses to early economic challenges provides valuable insights for scholars and policymakers. The authors' direct experience lends significant authority to their account of the complex negotiations and operational realities of the EMS during its critical first three years.