Skip to main content

Exchange Rate Mechanism

Exchange Rate Mechanism (ERM) System for keeping the currencies of member states of the European Union (EU) stable, as part of the European Monetary System (EMS). The ERM worked well for a time, but currency speculation forced two currencies, the UK pound sterling and the Italian lira, to leave it in 1992, because they were unable to keep the value of their currencies above the minimum limit. The ERM was near collapse, and to save it several currencies were allowed to fluctuate by as much as 15% above or below their central rate. See also foreign exchange

Cite this article
Pick a style below, and copy the text for your bibliography.

  • MLA
  • Chicago
  • APA

"Exchange Rate Mechanism." World Encyclopedia. . Encyclopedia.com. 17 Oct. 2017 <http://www.encyclopedia.com>.

"Exchange Rate Mechanism." World Encyclopedia. . Encyclopedia.com. (October 17, 2017). http://www.encyclopedia.com/environment/encyclopedias-almanacs-transcripts-and-maps/exchange-rate-mechanism

"Exchange Rate Mechanism." World Encyclopedia. . Retrieved October 17, 2017 from Encyclopedia.com: http://www.encyclopedia.com/environment/encyclopedias-almanacs-transcripts-and-maps/exchange-rate-mechanism

Learn more about citation styles

Citation styles

Encyclopedia.com gives you the ability to cite reference entries and articles according to common styles from the Modern Language Association (MLA), The Chicago Manual of Style, and the American Psychological Association (APA).

Within the “Cite this article” tool, pick a style to see how all available information looks when formatted according to that style. Then, copy and paste the text into your bibliography or works cited list.

Because each style has its own formatting nuances that evolve over time and not all information is available for every reference entry or article, Encyclopedia.com cannot guarantee each citation it generates. Therefore, it’s best to use Encyclopedia.com citations as a starting point before checking the style against your school or publication’s requirements and the most-recent information available at these sites:

Modern Language Association

http://www.mla.org/style

The Chicago Manual of Style

http://www.chicagomanualofstyle.org/tools_citationguide.html

American Psychological Association

http://apastyle.apa.org/

Notes:
  • Most online reference entries and articles do not have page numbers. Therefore, that information is unavailable for most Encyclopedia.com content. However, the date of retrieval is often important. Refer to each style’s convention regarding the best way to format page numbers and retrieval dates.
  • In addition to the MLA, Chicago, and APA styles, your school, university, publication, or institution may have its own requirements for citations. Therefore, be sure to refer to those guidelines when editing your bibliography or works cited list.