European Monetary System
technique designed to create economic unity for the nations of the European Economic Community by adjusting exchange rates between currencies and linking them to one another, EMS
European Monetary System
European Monetary System (E.M.S.)
An exchange arrangement formed in 1979 that involves the currencies of
European Union member countries.
European Monetary System (EMS)
An exchange rate regime established in 1979 in accordance with the Resolution of the European Council of 5 December 1978. Its operating procedures were laid down by the Agreement of 13 March 1979 between the central banks of the Member States of the European Economic Community (EEC). The objective was to create closer monetary policy cooperation between Community countries, leading to a zone of monetary stability in Europe. The main components of the EMS were the ECU, the exchange rate and intervention mechanism (ERM) and various credit mechanisms. It ceased to exist at the start of Stage Three of Economic and Monetary Union (EMU), when ERM II (exchange rate mechanism II) was established.
Copyright © 2006,
European Central Bank, Frankfurt am Main, Germany. This information may be obtained free of charge through the
ECB's website.
European Monetary System
system established to encourage monetary stability in Europe, through the implementation of credit and exchange rate policies.
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