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.@LucaFornaro3 raises good points in thread. To me the paralell is that if target band is not credible, it will be tested:
1) Either support is unlimited- but then we need conditions (or treaty violation) and we are back to OMT
2) Or limited, and then mkt will test it
Thoughts?
RT @LucaFornaro3: Some have argued that the disorderly devaluations of the lira, peseta and pound during the 1992 EMS crisis cast doubts about the ECB abili…
