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The decision to complete the single market, with the signing of the Single European Act in 1986, lent new force to the belief, long held by many Europeans, that a closely integrated group of economies would have much more to gain from lack of exchange rate fluctuations than from occasional exchange rate realignments. The European Monetary System and its Exchange Rate Mechanism, which aimed to control exchange rate movements among Member State currencies, would only be fully achieved through the establishment of a single currency and a single monetary policy. |
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