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European Monetary System

   Also found in: Medical, Financial, Acronyms, Encyclopedia, Wikipedia, Hutchinson 0.04 sec.
European Monetary System
n
(Economics, Accounting & Finance / 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 The original Exchange Rate Mechanism was formed in 1979 but superseded in 1999 when the euro was adopted as official currency of 11 EU member states.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


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academics, was skeptical--not of the wisdom of the European monetary union project--but of the likelihood of the Germans and the Bundesbank giving up their central role under the European Monetary System regime of 1980s and 1990s.
Soros had first gained worldwide notoriety when he stared down the Bank of England in 1992, almost single-handedly forcing the British pound out of the European Monetary System.
The scenario covers two monetary policy regimes: the current arrangements (the European Monetary System, or EMS) and those envisioned under the Economic and Monetary Union (EMU).
 
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