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European Monetary System |
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European Monetary SystemA currency union formed by some of the members of the EEC in 1979 that continued, with changing membership, until replaced by the EMU and the euro in 1999.European Monetary SystemThe monetary system of the EC which attempts to reduce the currency variations between members. The EMS became operational on March 13th, 1979, as the successor to the 'snake in a tunnel'. Its aim was to create a zone of monetary stability in Europe. Its general principles were outlined at the Bremen Summit in July 1978, and the system was presented in detail at the Brussels Summit in December. The EMS consists of three mechanisms: the ERM; accounting and transaction mechanisms related to the ECU; and credit mechanisms to enable central banksą intervention in the currency markets. All the European Community countries belong to the EMS, although not all of them participate in the ERM.Similar MatchesEuropean Central Bank (ECB)European Central Bank (ECB)Bank created to monitor the monetary policy of the 11 countries that have converted to the Euro from their local currencies. The 11 countries are: Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain. 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 The ecu has been superseded by the euro.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 Association of Securities Dealers Automated Quotation (EASDAQ)European Association of Securities Dealers Automated Quotation (EASDAQ)European equivalent of Nasdaq. European ExerciseEuropean ExerciseA feature of an option that stipulates that the option may only be exercised at its expiration. Therefore, there can be no early assignment with this type of option. European Free Trade AssociationEuropean Free Trade AssociationAn association of countries (originally comprising Denmark, United Kingdom, Austria, Switzerland, Portugal and Sweden), formed in 1960 mainly to abolish trade barriers between members. Further SuggestionsNew European Exchange (NEWEX)European Options Exchange (EOE) Single European Act European Economic Community European Recovery Program European Economic Area European style option European option European Monetary System (EMS) European Union (EU) European exchange rate mechanism (ERM) European terms Single European Act European Community European Communities Central and Eastern European countries European Payments Union European Currency Unit (ECU) European Monetary Agreement European Association of Securities Dealers Automated Quotation European style exercise European, Australia, and Far East index (EAFE index) |
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