European Monetary System
E23372
The European Monetary System was a regional arrangement among European Community countries, established in 1979, to stabilize exchange rates and coordinate monetary policy as a step toward deeper economic and monetary integration.
Aliases (2)
Statements (47)
| Predicate | Object |
|---|---|
| instanceOf |
European economic integration initiative
→
exchange rate mechanism → monetary system → |
| aim |
exchange rate stability among participating European currencies
→
monetary policy coordination → progress toward economic and monetary union → reduction of exchange rate variability → |
| appliesToJurisdiction |
European Community
→
|
| basedOn |
central rates against the European Currency Unit
→
fixed but adjustable exchange rate parities → |
| contributedTo |
Maastricht Treaty convergence process
→
creation of the euro → |
| coordinatedBy |
Committee of Governors of the Central Banks of the Member States of the European Economic Community
→
|
| country |
European Community member states
→
|
| currency |
European Currency Unit
→
|
| endTime |
1999
→
|
| follows |
parity grid of bilateral central rates
→
|
| hasEffect |
convergence of inflation rates among member states
→
greater monetary policy coordination in Europe → reduction of currency volatility in Western Europe → |
| hasPart |
European Currency Unit
→
European Monetary Cooperation Fund → Exchange Rate Mechanism → |
| historicalPeriod |
Cold War era
→
|
| inception |
March 13, 1979
→
|
| legalBasis |
European Council resolutions of 1978–1979
→
|
| location |
Western Europe
→
|
| nonParticipant |
United Kingdom at inception
→
|
| operatedBy |
central banks of participating European Community countries
→
|
| participant |
Benelux countries
→
Denmark → France → Germany → Ireland → Italy → |
| precededBy |
Bretton Woods system
→
|
| replacedBy |
Economic and Monetary Union of the European Union
→
euro area → |
| replaces |
European “snake in the tunnel” mechanism
→
|
| significantEvent |
1992–1993 ERM crisis
→
widening of ERM fluctuation bands in 1993 → withdrawal of the British pound from the ERM in 1992 → |
| startTime |
1979
→
|
| uses |
exchange rate bands
→
medium-term financial assistance mechanisms → mutual central bank intervention → short-term monetary support mechanisms → |
Referenced by (9)
| Subject (surface form when different) | Predicate |
|---|---|
|
ERM
→
European Currency Unit → Exchange Rate Mechanism → |
partOf |
|
ERM
("European Exchange Rate Mechanism")
→
|
alsoKnownAs |
|
DEM
→
|
associatedWith |
|
Deutsche Mark
→
|
participatedIn |
|
European Currency Unit
→
|
relatedConcept |
|
European Central Bank
("European Monetary Institute")
→
|
replaced |
|
Spanish peseta
→
|
wasPartOf |