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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 style exerciseEuropean style exerciseA method of exercising options contracts in which the buyer can exercise the contract on the last day before expiration. European Currency Unit (ECU)European Currency Unit (ECU)An index of foreign exchange consisting of European currencies, originally devised in 1979. See also: Euro. 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 Recovery ProgramEuropean Recovery ProgramSee Marshall Plan. 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 SuggestionsEuropean Free Trade AssociationSingle European Act European Communities European Economic Community European Monetary Agreement European style option New European Exchange (NEWEX) European option European Exercise European Central Bank (ECB) European, Australia, and Far East index (EAFE index) European exchange rate mechanism (ERM) Single European Act European Options Exchange (EOE) European terms Central and Eastern European countries European Currency Unit European Payments Union European Association of Securities Dealers Automated Quotation European Community European Union (EU) European Association of Securities Dealers Automated Quotation (EASDAQ) |
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