https://wiki.freecapitalists.org/index.php?action=history&feed=atom&title=European_Exchange_Rate_MechanismEuropean Exchange Rate Mechanism - Revision history2026-08-16T02:42:03ZRevision history for this page on the wikiMediaWiki 1.43.9https://wiki.freecapitalists.org/index.php?title=European_Exchange_Rate_Mechanism&diff=16684&oldid=prevPestergaines: Created initial stub.2011-06-27T20:30:10Z<p>Created initial stub.</p>
<p><b>New page</b></p><div>The '''Exchange Rate Mechanism''' (ERM) was along with the [[Ecu]] one of the foundation stones of [[European Union|economic and monetary union]].<br />
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The mechanism gave currencies a central exchange rate against the Ecu. That, in turn, gave them central cross-rates against one another. It was hoped that the mechanism would help stabilize exchange rates, encourage trade within Europe and control inflation.<br />
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The ERM gave national currencies an upper and lower limit on either side of this central rate within which they could fluctuate.<br />
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In 1992 the ERM was wrenched apart when a number of currencies could no longer keep within these limits. On what became known as [[Black Wednesday]], the [[British pound]] was forced to leave the system. The [[Italian lira]] also left and the [[Spanish peseta]] was devalued.<ref name="BBC_ERM">BBC News. [http://news.bbc.co.uk/2/hi/in_depth/europe/euro-glossary/1216833.stm "ERM (Exchange Rate Mechanism)"], ''BBC'', Euro-glossary, 30 April, 2001. Referenced 2011-06-27.</ref><br />
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==References==<br />
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==Links==<br />
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[[Category:European Union]]<br />
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