Exchange Rate Mechanism

 

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Exchange Rate Mechanism

A 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 Mechanism

The 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.



Similar Matches

Adjustment mechanism

Adjustment mechanism

The theoretical process by which a market changes in disequilibrium moving toward equilibrium if the process is stable. See Walrasian and Marshallian adjustment.


Balance of payments adjustment mechanism

Balance of payments adjustment mechanism

Any 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.


Dispute settlement mechanism

Dispute settlement mechanism

The procedure by which the WTO settles disputes among members, primarily by means of a three-person panel that hears the case and issues a report, subject to review by the Appellate Body.


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.


Price specie flow mechanism

Price specie flow mechanism

Same as specie flow mechanism.


Further Suggestions

Trade Policy Review Mechanism
Price specie flow mechanism
Specie flow mechanism
Exchange Rate Mechanism (ERM)


 
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