HomeDefinitionsCompareDebt European Monetary System (EMS)The financial definition for European Monetary System (EMS):A system adopted by European Community members with the aim of promoting stability by limiting exchange-rate fluctuations. The system was originated in 1979 by the nine members of the European Community (EC). 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. The 1992 Maastricht Treaty provided for the move to Economic and Monetary Union (EMU) , including a European Monetary Institute to coordinate the economic and monetary policy of the EU, a European Central Bank (ECB) to govern these policies, and the presentation of a single European currency. Similar MatchesEuropean Association of Securities Dealers Automated Quotation (EASDAQ)European Association of Securities Dealers Automated Quotation (EASDAQ)European equivalent of Nasdaq. European, Australia, and Far East index (EAFE index)European, Australia, and Far East index (EAFE index)Stock index, computed by Stock index. European Central Bank (ECB)European Central Bank (ECB)Bank created to monitor the monetary policy of the 11 countries that have converted to the Euro from their local currencies. The 11 countries are: Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain. Further SuggestionsEuropean Currency Unit (ECU)European exchange rate mechanism (ERM) European Exercise European option European Options Exchange (EOE) European style exercise European terms Click to compare definitions of European Monetary System (EMS) Click to view definitions beginning eu |