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European exchange rate mechanism (ERM) |
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European exchange rate mechanism (ERM)The system that countries in the European Union once used to pay exchange rates within bands around an ERM central value.European exchange rate mechanism (ERM) Similar MatchesDispute settlement mechanismDispute settlement mechanismThe procedure by which the WTO settles disputes among members, primarily by means of a three-person panel that hears the case and issues a report, subject to review by the Appellate Body. Exchange Rate Mechanism (ERM)Exchange Rate Mechanism (ERM)The methodology by which members of the EMS maintain their currency EMS within an agreed-upon range with respect to other member countries. Exchange Rate MechanismExchange Rate MechanismA system that was operated by some central banks within the European Union, which intervened in exchange markets to limit the fluctuations of their currencies relative to one another, while letting all of them collectively float. Specie flow mechanismSpecie flow mechanismUnder the gold standard, the mechanism by which international payments would adjust. A country with high inflation would export less, import more, and thus lose specie, i.e., gold. With the money supply fixed to the quantity of gold, the resulting monetary contraction would reduce prices. Due to David Hume. Adjustment mechanismAdjustment mechanismThe theoretical process by which a market changes in disequilibrium moving toward equilibrium if the process is stable. See Walrasian and Marshallian adjustment. Further SuggestionsBalance of payments adjustment mechanismPrice specie flow mechanism Price specie flow mechanism Trade Policy Review Mechanism Exchange Rate Mechanism |
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