|
|
Exchange Rate Mechanism (ERM) |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
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 MatchesSpecie flow mechanismSpecie flow mechanismUnder the gold standard, the mechanism by which international payments would adjust. A country with high inflation would export less, import more, and thus lose specie, i.e., gold. With the money supply fixed to the quantity of gold, the resulting monetary contraction would reduce prices. Due to David Hume. 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. Price 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. Trade Policy Review MechanismTrade Policy Review MechanismThe periodic review of the trade policies and practices of the member countries of the WTO, conducted and published by the WTO. 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. Further SuggestionsDispute settlement mechanismExchange Rate Mechanism Exchange Rate Mechanism Price specie flow mechanism European exchange rate mechanism (ERM) |
|
|
|