ABSTRACT
This introduction presents an overview of the key concepts discussed in the subsequent chapters of this book. The book analyses the historical experience of exchange rates and economic policy in the 20th century, to inform and enlightens the debate over exchange rate policy in the 21st century. It examines the inter-war experience from an international perspective and assesses the impact of different exchange rate regimes on national economic performance. The book provides a different perspective is offered on exchange rate crises and economic. It argues that the case for resolving serious structural difficulties, which affect export competitiveness, prior to attempting to settle an exchange rate regime or parity. The book considers whether the new entrants to the EU (especially in south-eastern Europe) need formally to join the single currency. It considers different aspects of the relationship between economic aggregates and the behaviour of the exchange rate.
