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Glossary Term: EUROPEAN MONETARY SYSTEM

Definition(s) for EUROPEAN MONETARY SYSTEM:


1. ) Established in 1979, it is an exchange-rate system adopted by European Union members with the goal of moving towards a unified European currency. The EMS comprised three principal elements: the European Currency Unit (ECU), the monetary unit used in EC transactions; the Exchange Rate Mechanism, ERM, whereby those member states taking part agreed to maintain currency fluctuations within certain agreed limits; and the European Monetary Cooperation Fund, which issues the ECU and oversees the ERM.



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