Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
The early Nineties were indeed a hard, painful lump to swallow for France, as Mitterand held the European course (while the Brits copped out).
by afew (afew(a in a circle)eurotrib_dot_com) on Tue Sep 11th, 2007 at 03:33:01 PM EST
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I don't know if Sweden was a part of ERM back then, I don't think so, but we had it hard too. The largest recession since the Depression, actually a new smaller depression, and it was all our own fault.

I remember going to school and we only had water to drink for lunch, they didn't reinstate milk until somewhere round 1996. Felt like a huge luxury when we got it.

Peak oil is not an energy crisis. It is a liquid fuel crisis.

by Starvid on Tue Sep 11th, 2007 at 03:37:29 PM EST
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Sweden wasn't in the ERM is memory serves though the central bank up there, like other Scandianvian countries, had the kroner pegged to a currency backet heavily weighted in DM.

Typically, you want your currency hedged as a function of your trading relationships, just like a company hedges it's foreign subsidiary cash flows, and that's, in grossly oversimplfied terms, how a central bank does it at the macro level.

I think Sweden, less than Finland but all the same quite significantly, was hit hard by the collapse of economic activity in the former Soviet Union in the early 1990's.

The Hun is always either at your throat or at your feet. Winston Churchill

by r------ on Tue Sep 11th, 2007 at 04:17:23 PM EST
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