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European Monetary System (EMS) |
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European Monetary System (EMS)A system adopted by European Community members with the aim of promoting stability by limiting exchange-rate fluctuations. The system was originated in 1979 by the nine members of the European Community (EC). The EMS comprised three principal elements: the European Currency Unit (ECU), the monetary unit used in EC transactions; the Exchange Rate Mechanism, ERM, whereby those member states taking part agreed to maintain currency fluctuations within certain agreed limits; and the European Monetary Cooperation Fund, which issues the ECU and oversees the ERM. The 1992 Maastricht Treaty provided for the move to Economic and Monetary Union (EMU) , including a European Monetary Institute to coordinate the economic and monetary policy of the EU, a European Central Bank (ECB) to govern these policies, and the presentation of a single European currency.European Monetary System (EMS) Similar MatchesEuropean CommunitiesEuropean CommunitiesThe name adopted in 1967 by the European Economic Community when it merged with the ECSC and Euratom. This name and the acronym EC was used until 1992 when it was replaced by European Union. European Union (EU)European Union (EU)An economic association of European countries founded by the Treaty of Rome in 1957 as a common market for six nations. It was known as the European Community until January 1, 1994 and currently comprises 15 European countries. Its goals are a single market for goods and services without any economic barriers, and a common currency with one monetary authority. European exchange rate mechanism (ERM)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 Currency UnitEuropean Currency UnitA weighted average of European Community currencies with weighting tending to be proportional to a country's economy. The ecu has been superseded by the euro. European Economic CommunityEuropean Economic CommunityThe original economic community set up in 1957 by the 6 founder members ( France, West Germany, Belgium, Luxembourg, Holland and Italy) and more commonly known as the Common Market. The Community is currently known as the European Community. Further SuggestionsEuropean style exerciseEuropean Association of Securities Dealers Automated Quotation (EASDAQ) European Exercise Central and Eastern European countries European Community European Monetary System European Monetary Agreement European Monetary System European Options Exchange (EOE) European Currency Unit (ECU) European Central Bank (ECB) European, Australia, and Far East index (EAFE index) European Association of Securities Dealers Automated Quotation Single European Act European option Single European Act European Recovery Program European Payments Union European Free Trade Association New European Exchange (NEWEX) European Economic Area European terms European style option |
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