The exchange rate mechanism (ERM)crisis in 1992 represents the __________ in German interest rates that caused other European interest rates to __________,and resulted in less aggregate spending.

Question

Quizplus · Accepted Answer

The ERM crisis in 1992 was triggered by an increase in German interest rates, which led to an increase in interest rates in other European countries, reducing aggregate spending.

The Exchange Rate Mechanism (ERM)crisis in 1992 Represents the __________