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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 Recovery ProgramEuropean Recovery ProgramSee Marshall Plan. European Association of Securities Dealers Automated Quotation (EASDAQ)European Association of Securities Dealers Automated Quotation (EASDAQ)European equivalent of Nasdaq. European Economic AreaEuropean Economic AreaThe group of countries comprised of the EU together with EFTA. The two groups have agreed to deepen their economic integration. European termsEuropean termsA foreign exchange quotation that states the foreign currency price of one US dollar. European Monetary System (EMS)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. Further SuggestionsCentral and Eastern European countriesNew European Exchange (NEWEX) European Options Exchange (EOE) European Economic Community European Free Trade Association European Community European Exercise European Currency Unit European Monetary Agreement European, Australia, and Far East index (EAFE index) European style exercise Single European Act European Union (EU) European option Single European Act European Central Bank (ECB) European Payments Union European exchange rate mechanism (ERM) European style option European Currency Unit (ECU) European Communities European Association of Securities Dealers Automated Quotation |
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