> ... Countries weren’t ready to give up their national currencies, but they agreed to fix their exchange rates with each other instead of “floating” their curr

> ... Countries weren’t ready to give up their national currencies, but they agreed to fix their exchange rates with each other instead of “floating” their currency and letting capital markets set the rates. Since Germany had the strongest economy in Europe, each country set their currency’s value in Deutschmarks. They agreed to maintain the exchange rate between their currency and the Deutschmark within an acceptable band of plus or minus 6% of the agreed upon rate. Germany's economic policies in particular have had a big effect on the course of the last 100 years of European history. The hyperinflation following Versailles and ensuing economic dislocation led in no small part to the rise of the Nazi party. The commitment of Germany in particular among European countries to strict budget controls to avoid another hyperinflation laid the groundwork for Soros' attack on the Pound. Continued fiscal discipline has helped make Germany a dominant economic force in the EU. It set the stage for the Greek debt crisis, and several others in the works. These all resemble the Pound crisis in that the unusually strong vigilance against excessive debt in Germany is/was a driving factor.