The EMS was an EC arrangement which started in 1979, and aimed to create currency stability, monetary co- operation and the convergence of economic policies. It had what economists call ___ exchange rate mechanism.

Question

The EMS was an EC arrangement which started in 1979, and aimed to create currency stability, monetary co- operation and the convergence of economic policies. It had what economists call ___  exchange rate mechanism.

Quizplus · Accepted Answer

The EMS (European Monetary System) utilized an adjustable peg exchange rate mechanism, which allowed currencies to fluctuate within a narrow band around a central rate, but with the possibility of adjusting this central rate in case of economic imbalances.

The EMS Was an EC Arrangement Which Started in 1979