Leading up to the foreign exchange crisis of September 1992,the Bank of England wanted to pursue a(n)________ monetary policy and the German Bundesbank wanted to pursue a(n)________ monetary policy.

Question

Quizplus · Accepted Answer

Leading up to the foreign exchange crisis of September 1992, the Bank of England wanted to pursue an expansionary monetary policy to stimulate the UK economy, while the German Bundesbank wanted to pursue a contractionary monetary policy to combat inflation, especially after the reunification of Germany. This difference in policy approaches contributed to the tensions within the European Exchange Rate Mechanism (ERM).

Leading Up to the Foreign Exchange Crisis of September 1992,the