HomeDefinitionsCompareDebt European exchange rate mechanism (ERM)The financial definition for European exchange rate mechanism (ERM):The system that countries in the European Union once used to pay exchange rates within bands around an ERM central value. Similar MatchesExchange Rate Mechanism (ERM)Exchange Rate Mechanism (ERM)The methodology by which members of the EMS maintain their currency EMS within an agreed-upon range with respect to other member countries. Price specie flow mechanismPrice specie flow mechanismAdjustment mechanism under the classic gold standard allowing disturbances in the price level in one country to be wholly or partly offset by a countervailing flow of specie (gold coins) that would act to equalize prices across countries and automatically bring international payments into balance. Click to compare definitions of European exchange rate mechanism (ERM) Click to view definitions beginning eu |