European Monetary System


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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 The original Exchange Rate Mechanism was formed in 1979 but superseded in 1999 when the euro was adopted as official currency of 11 EU member states.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
Collins English Dictionary – Complete and Unabridged, 12th Edition 2014 © HarperCollins Publishers 1991, 1994, 1998, 2000, 2003, 2006, 2007, 2009, 2011, 2014

European Monetary System

A financial system used to stabilize exchange rates between currencies of member states.
Dictionary of Unfamiliar Words by Diagram Group Copyright © 2008 by Diagram Visual Information Limited
References in periodicals archive ?
Tensions around the European Monetary System in 1992 and 1993 were additional significant sources of conflict, and 1998 also saw a resurgence of conflict probabilities, perhaps related to the stability and growth pact and the imminent introduction of the euro.
# 1979 - The European Monetary System (EMS) is created, with the exchange rate mechanism (ERM) defining rates in relation to the European Currency Unit (ECU).
(3) In 1979 the European Monetary System (EMS) created a fixed exchange rate system in which all member currencies, except the pound sterling, participated.
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.
In a study of the 1992-93 crisis afflicting the European Monetary System (EMS) in the aftermath of German reunification, Steven Weber argues that the existing arrangement actually survived with relatively modest alterations due in considerable measure to the fact that the EMS is nested into the larger framework of the European Union (EU).
He thinks we should be in the European Monetary System tomorrow, if not before.
Rather than wait for the Government to announce its decision about membership of the European monetary system, Birmingham-based IMI has taken its own stand.
In 1979, the European Monetary System (EMS) was established to stabilize exchange rates between the participating European countries.
During this period, it oversaw the operation of the European Monetary System, held the gold and foreign exchange reserves of the EU members, and advocated the use of the ECU and its clearinghouse.
The literature on the political economy of European monetary integration has evolved in three waves over the past twenty-five years, analyzing consecutively the initial plan for monetary union (Werner Report), the formation and operation of the European Monetary System (EMS), and the (more far-reaching) Maastricht Treaty.

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