European Monetary System


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European Monetary System (EMS)

a European monetary unit, an exchange rate intervention mechanism and a transfer mechanism established in 1978 under the law of the European Communities. It is this system that established the European Currency Unit (ECU), a currency used to settle transactions between Community authorities and for operating the other mechanisms of the system. Developments in 1997 saw a second exchange rate mechanism for co-ordinating the EURO with remaining national currencies. On 1 January 2002 the euro became the legal tender of the participating countries.
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17) De Grauwe (2003) documents the role of Germany in the European Monetary System and the role of U.
Sweden guaranteed its lack of fitness for membership by failing to join the exchange rate mechanism of the European Monetary System.
The ECU is currently the basis for the European Monetary System.
During this period, it oversaw the operation of the European Monetary System, held the gold and foreign exchange reserves of the EU members, and advocated the use of the ECU and its clearinghouse.
Making Commitments: France and Italy in the European Monetary System, 19791985.
Limiting Exchange Rate Flexibility: the European Monetary System and Monetary Union, MIT Press, Cambridge, MA.
Exchange Rates, Policy Convergence, and the European Monetary System.
For the first seven years of its life, the European Monetary System operated effectively.
Similarly, in the United Kingdom, the disinflation begun two years prior to target adoption (during membership in the Exchange Rate Mechanism) continued against a background of improving growth, falling unemployment, and much lower nominal interest rates in the wake of the United Kingdom's exit from the European Monetary System.
The paper also tests the significance of a dummy variable representing the European Monetary System (EMS) for the original eight members of the ERM - France, Germany, Italy, Belgium, Denmark, Ireland, Luxembourg, and the Netherlands.
The attacks on the European Monetary System (EMS) in 1992 led to a number of devaluations and drove the United Kingdom, Italy, and Sweden from their stabilized exchange rate arrangements; the bands of the EMS were widened from [+ or -]2.
In the policy section, a chapter by Storper examines the characteristics of regional labor market institutions that permit the development of geographically concentrated dynamic sectors geared to "product-based technological learning"; Sokoloff argues that productivity growth in industrial sectors targeted by state aid in South Korea and Mexico has been poor compared with productivity growth in untargeted sectors; and Frieden explores the different responses of sectors of the Italian and French labor movements to exchange rate policy and the European Monetary System.

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