European Monetary System (EMS)
A 1979 arrangement between several European countries to link their currencies in an attempt to stabilize the exchange rate. This system was succeeded by the European Monetary Union (EMU), an institution of the European Union (EU), which established a common currency called the euro. Investopedia Says:
The European Monetary System originated in an attempt to stabilize inflation and stop large exchange-rate fluctuations between European countries. Then in June 1998, the European Central Bank was established and, in Jan 1999, a unified currency, the euro, was born and came to be used by most EU member countries. As of 2005, Britain, Denmark and Sweden were the only original EU members that had not adopted the euro. Related Terms:
Central Bank
Currency
European Economic and Monetary Union - EMU
Exchange Rate
Fixed Exchange Rate
Floating Exchange Rate
Inflation |