VWL 2 (Subject) / Präsentation 3 - EMS (Lesson)
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European Montetary System
This lesson was created by Konstantin11.
- Basic Information EMS 1 (1979) Goals: stable exchange rates Exchange rate mechanism Finnancial assistance European Currency Unit (ECU) as references Ended: 1999
- Main objectives Goals (ECB) Stable exchange rate between the Euro and non participating countries currencies Price stability Money policy Manage currency reserves of participating countries Additional Tasks: Consulting, data collection and treatment, supervision of banks since 2014, expand forgery-proofed banknotes
- Exemplary rules Individual responsibility of Euro price stability Max. 15% daily exchange rate fluctuations between non Euro currencies and Euro ECB is not obliged to support weak currencies if Euro stabiliy is endangered
- Bretton-Woods-System Fluctuation to the dollar drom +- 2,25 % Policy makers wanted to keep intra-European rates fixed capital movement monetary policy autonomy Paper money does not need any backing