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Exchange Rate Mechanism (ERM) |
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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 Mechanism (ERM) Similar MatchesPrice specie flow mechanismPrice specie flow mechanismAdjustment mechanism under the classic gold standard allowing disturbances in the price level in one country to be wholly or partly offset by a countervailing flow of specie (gold coins) that would act to equalize prices across countries and automatically bring international payments into balance. Balance of payments adjustment mechanismBalance of payments adjustment mechanismAny process, especially any automatic one, by which a country with a payments imbalance moves toward balance of payments equilibrium. Under the gold standard, this was the specie flow mechanism. 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. 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. Exchange Rate MechanismExchange Rate MechanismThe mechanism by which members of the EC formerly operated their currency exchange rates within given upper and lower limits. In January 1999 certain members of the EC adopted the euro for their currency. Further SuggestionsEuropean exchange rate mechanism (ERM)Specie flow mechanism Trade Policy Review Mechanism Dispute settlement mechanism Price specie flow mechanism |
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