Exchange Rate System And Currency Preferences: Evidence From The European Monetary System

Abstract: This Paper Evaluates The Attractiveness Of The Present European Currency Unit (Ecu) As An International Currency From The Point Of View Of European Economic Agents. The Recent "Hard Ecu" Proposal Aims To Develop The Present Ecu Into A Parallel Currency, First Circulating Jointly With Existing National Currencies And Then Leading To A Single Currency For The Community