The European Exchange Rate Mechanism (ERM) was a disaster. Between 1979 and 1987, there were 12 realignments of the ERM. In 1992, things kicked off big time, with Finland, Italy, the UK, Sweden, Portugal, Spain, Norway and Ireland devaluing or abandoning the peg. The UK’s departure became known as Black Wednesday.
Despite all this evidence it wouldn’t work, Europe went right ahead with creating the euro. A shared exchange rate which would be even more difficult, humiliating and dangerous to reverse than the ERM.
But the same flaws that undermined the ERM have gnawed away at the European economy ever since. And, eventually, they’ll trigger an almighty crisis. That’s the contention in my book How the Euro Dies.
But what is The 12?
As you can imagine, the editorial team at Southbank Investment Research do a lot of reading. And we recommend books to each other. Including what to avoid…
I thought it was time we passed this valuable resource on to our many readers of our various newsletters. So you can allocate your reading time a little better too.
What we came up with is The 12. Each month, we interview an author about a book we think you should consider reading.
Editor, Fortune & Freedom