The European Monetary System

        The European Economic company (EC) was established by the Trety of metropolis of Italy in 1957 with the intent of reaching full economic, monetary, and political man and wife among its member countries. The primary goal of this European residential area was to decline as a single market. In the beggining the European Community was consited of France, Germany, Italy, Belgium, Netherland and Luxembourg. Those countries were the first, because they had open economies. Nowadays, the members of the European Community are 15 countries.         Iin institutionalize for a common market to be established, the need of a common gold was essential. By that the transaction cost would be eliminated and the uncertainty of the shift rates. So, in ready for aal those to be accomplished, the European had to create a monetary system, which called, EMS (European Monetary System).         The EMS was created in high society for the countries of EC to achieve financial cooperation and monetary stability. The EMS was created in clash against 1979 as an answer to the instability of the European economies, caused by flunctuations in the exchange rates. Its purpose was: 1) to establish monetary stability, 2) to overcome constraints caused by the interdependence of EU economies and 3) to aid the long-term process of European monetary integration.

The mechanism the will help the success of the EMS was the supercede evaluate Mechanism (ERM), a voluntary system of semi-fixed exchange rates, base on ECU.         The ERM is a key instrument in g olf-club to achieve a single European curren! cy administered by an EU central bank, which was the aim of the EMS and and of the Treaty of Maastricht in 1992. So, the countries in that Treaty set a date in wander to achieve these goals. The date was the January 1, 1999, but because the process of achieving this merger is very... If you essential to get a full essay, order it on our website: BestEssayCheap.com

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