Bell (1973) , recognized that the inflows into Europe in 1970 and 1971, led to increases in European central bank? holdings of dollars. The Bundesbank was affected to a better extent than other central banks, and this was strengthened after February 1971 by speculative stress against the dollar, and in favour of the DM and to a lesser extent the Swiss-Franc (SFr). Given, that the dollar inflows from the underlying US steadiness of funds deficit, have been maybe solely 1 / 4 of the full dollar circulate in Western Europe, and Japan over the 12 months to August 1971 , the Euro-buck market could have significantly magnified the issue of the dollar. Bell concludes that the existence of the Euro-dollar market almost definitely triggered re-alignment and the subsequent breakdown to occur forward of it might need finished in the absence of a Euro-dollar market.
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