European Monetary System


Also found in: Thesaurus, Medical, Legal, Financial, Acronyms, Encyclopedia, Wikipedia.

European Monetary System

n
(Banking & Finance) the system used in the European Union for stabilizing exchange rates between the currencies of member states and financing the balance-of-payments support mechanism. The original Exchange Rate Mechanism was formed in 1979 but superseded in 1999 when the euro was adopted as official currency of 11 EU member states. A new exchange rate mechanism (ERM II) based on the euro is used to regulate the currencies of participating states that have not adopted the euro. Abbreviation: EMS

European Monetary System

A financial system used to stabilize exchange rates between currencies of member states.
References in periodicals archive ?
In 1979, most of the EEC countries formed the European Monetary System (EMS), to be able to keep the exchange rates stable in the member states, but the point of reference in this system was the deutsche mark.
8 Which former economics adviser to Margaret Thatcher, who once described the European Monetary System as half baked, died, aged 82?
It was 20 years after the European Monetary System was created in 1979 that the euro was introduced.
There is a massive body of literature on the Gold Standard, the Bretton Woods system, the European Monetary System, all of which had the express approval of governments because these systems supported their foreign policy aims.
As well as examining possible objections and providing responses (here, De Soto's style will remind some readers of the traditional Scholastic method of intellectual inquiry), De Soto takes the time to apply his theory to practical policy issues, such as the erection of a new European monetary system.
Any seeking a short history of the European monetary system and how it's being integrated today must have Madeleine O.
The ECU was conceived in 1979 by the European Economic Community, the predecessor of the European Union, as a unit of account for the currency area called the European Monetary System and was also the precursor of the euro, which was introduced in 1999.
He describes how the breakdown of the Bretton Woods system established after World War II to stabilize international monetary and financial systems led to demands for European monetary unification, and he explores the structure and modes of operation of the European Monetary System that existed from 1979 until the start of the EMU in 1999.
There is little doubt that Germany's role in the European Monetary System in the years leading up to European Monetary Union warrants reactions to interest rate developments abroad.
Capital-flow reversals have involved a progression of speculative attacks, mostly against pegged exchange rate arrangements, beginning with the currencies participating in the exchange rate mechanism (ERM) of the European Monetary System in 1992-93, and continuing with the Mexican peso in 1994-95, the East Asian currencies in 1997-98, the Russian ruble in 1998, the Brazilian real in 1999, and the Turkish lira in 2001.
Seven years later, in 1992, in the middle of the ERM crisis of the European Monetary System, the dollar had fallen below DM1.

Full browser ?