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What does the open economy imperfect competition model (ERU ?V AD ?V BT) predict would happen to inflation and unemployment in the countries that devalued in the crisis? Did it happen? Discuss.
The Exchange Rate Mechanism (ERM) was created in 1990, and was one of the key components to the integration of Europe. It followed the European Customs Union which was created in 1960?¦s and more recently the creation of the single market in 1986, which removed the controls on cross-border capital flows. As well as these economic alliances, Europe also had its own European Parliament, the European Court of Justice and the European Commission...
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