01845cas a2200253 a 4500 AALejournalIMF008750 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451856682 1018-5941 BD-DhAAL BD-DhAAL Masson, Paul. The Credibility of the United Kingdom's Commitment to the Erm : Intentions Versus Actions / Paul Masson. Washington, D.C. : International Monetary Fund, 1994. 1 online resource (32 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The paper presents estimates of a model of the credibility of the U.K. commitment to its central parity against the deutsche mark during the period of U.K. ERM membership (1990-92). The measure of credibility used is the long-term interest differential with Germany. Credibility is decomposed into two aspects: an assessment of whether the government was truly committed to the ERM, and the probability that even a committed government would be able to continue to bear the unemployment costs. Doubts about the first aspect-which could lead to a self-fulfilling crisis-are shown to have declined steadily during the period of ERM membership, while the second aspect is estimated to have become increasingly important, due to rising unemployment. Mode of access: Internet United Kingdom imf IMF Working Papers; Working Paper ; No. 1994/147 Full text available on IMF http://elibrary.imf.org/view/journals/001/1994/147/001.1994.issue-147-en.xml IMF e-Library