01600cas a2200241 a 4500 AALejournalIMF010152 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451927030 1018-5941 BD-DhAAL BD-DhAAL International Monetary Fund. Credibility. Capital Controls, and the EMS. Washington, D.C. : International Monetary Fund, 1989. 1 online resource (34 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 A common rationale for EMS membership is that it enhances the credibility of a central bank's commitment to stable monetary growth. In this paper we consider this idea in the light of two features of the system, namely, the existence of exchange rate bands and the prevalence of capital controls. In our model, capital controls themselves affect credibility, reducing it in the absence of exchange-rate bands but enhancing it when there are such bands. We also show that it is difficult to reconcile the non-zero width of the bands with the credibility-based interpretation of the EMS. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1989/009 Full text available on IMF http://elibrary.imf.org/view/journals/001/1989/009/001.1989.issue-009-en.xml IMF e-Library