Another criticism was laid by Paul De Grauwe (1987) about the credibility of the EMS policy. In 1979, when EMS entered into force, GDP growth rate, investment growth rate, the stability of exchange rate, and interest rates declined dramatically. In 1980, there was a rise in unemployment after EMS implementation. Both the average EMS the unemployment rate and the inflation differential had a significant effect on EMS credibility. Macroeconomically, small EMS countries experienced larger declines in investment, whereas before the EMS they had experienced relatively faster growth rates.