European Exchange Rate Mechanism
A method of managing the relative value of the individual currencies issued by European countries. The European Exchange Rate Mechanism (ERM) was a semi-pegged system that allowed for some variation in currency exchange rates inside a percentage band above and below a central parity level. Its purpose was to reduce fluctuations in the relative forex market valuation observed between key European currencies prior to the consolidated Euro currency being introduced in 1999.
Browse by Subjects
See All Related Terms »

moral hazard
put/call ratio