Zigzag path to the euro

The irrevocable fixing of exchange rates for currencies entering European monetary union (Emu) is much too important to be left to the markets. That is the conclusion of most policymakers looking at the task the EU has set itself between now and January 1 1999.

But can these learned folk come up with a better solution? If they have, they’re keeping it to themselves. The debate on how to fix these parities is going right up to the wire, inviting the very market turbulence governments would like to avoid.