Which of the following most accurately describes the European Monetary System (EMS) crisis in 1992?
A. The EMS crisis of 1992 featured a group of countries within the
European Union that borrowed more than their actual capacities then were unable to use monetary policy to mitigate the crisis since the Euro (the common currency within the European Union) was already adopted by 1992. This led to increasing grievance among the debtor nations within the EU.
B. The EMS crisis of 1992 took place after Germany raised its interest rates to fight inflation and attract foreign investments, after which other members of the European Community (later the EU) were forced to increase theirs in order to defend their currencies' value. This resulted in a severe economic downturn for EC member states outside of Germany, which strengthened the argument for the need for a common currency within what later became the EU.
C. The EMS crisis of 1992 was triggered by Germany engaging in "quantitative easing," which decreased the value of Germany's currency relative to the currency issued by other members within the European Community (EC), which later became the EU.
D. None of the above