The Exchange Rate Mechanism and the steps toward a single European currency have far-reaching effects for individuals, businesses and world economies. Yet much of the debate and information has been misleading and ill-informed. "The ERM Explained" examines, from an impartial viewpoint, whether a system of pegged exchange rates (and ultimately a single currency) will bring the benefits economists claim. Will the planned route for European monetary union be diverted by the reunification of Germany? Is the ECU essential for Europe to be taken seriously in world markets? Will monetary union create pan-European unemployment? These and many other questions are raised by the text, which details how the ERM operates, what was agreed at Maastricht, and the long-term outlook for a single currency,