Since its inception, the European Monetary System (EMS) has attracted much attention as a structure coordinating political relations.
Frustrated prospects of the global monetary system with its floating rate EMU founding fathers intended to restore the system of fixed but adjustable exchange rates in much of the European Communities.Such a system would protect the huge internal European trade flows from the sharp changes in competitiveness.It also would limit the divergence of national inflation rates, allowing to set a less volatile inflation and leading to the "zone of monetary stability".
At the same time the European Monetary System was evaluated as an extremely ambitious project, as he returns to the management of the European currency in some countries, most notably France and Italy, remained aloof from earlier attempts at unification.
system subsequently evolved, stepping beyond its original objectives: control of the exchange rate mechanism of the European Economic Community (EEC) became stiffer consistency of monetary policy definition, the mobility of capital is higher than it was in the early years of EMU.
Everything in the world is interconnected, especially in the field of monetary relations at the global level.Therefore it is necessary to say a few words about the world monetary system as a whole, which took several stages of development:
· Paris monetary system (1816-1914 years), based on the gold standard.
· gold bullion standard (1914-1941), which provided for the exchange of paper money for gold bars weighing not less than 12.5 kilograms.
together with gold in time for international payments have become accepted US dollars and pounds sterling.
· In 1922, a conference was held in Genoa, which brought together representatives of 34 countries, to discuss aspects of monetarism after the First World War, the recovery strategy in Central and Eastern Europe and the agreement between the European capitalist economies and the new Soviet regime.
then formulated Genoa monetary system (1922-1944), which was the basis of the gold exchange standard.
· Since the Second World War attempts were made to maintain stability among the major currencies through the system of fixed exchange rates, called the Bretton Woods agreement, which collapsed in the early 1970s.
Nevertheless, European leaders sought to the principle of a stable exchange rate, abandoning the policy of floating exchange rates, popular in the United States.
Most countries agreed in 1972 to support the currency relations.And monetary system, dubbed "Snake in the tunnel" was to prevent fluctuations of more than 2.25 percent.
It was the first attempt of cooperation in the field of monetary relations and, in fact, it binds all EEC currencies with each other.Although the regime more or less lasted until 1979, he actually began to fall apart in 1973, in connection with the free fluctuation of the dollar.
European Monetary System was established in 1979 in order to stabilize the rate of economic communities are included in the European Union.Then there was the European currency unit (ECU), based on a basket of national currencies.ECU was the forerunner of the Euro.
the early stages of the movement was not entirely successful, there were many technical difficulties.Periodic adjustments have increased the value of strong currencies and lowered weaker.
However, after 1986 the changes in terms of the national interest rates are used to maintain the currency within a narrow range (from a mutual central rate).Countries participating in the process, had to conform to the established unit, which is a decisive contribution to the fight against inflation.
to establish the correct exchange rate mechanism (ERM) for all States Parties until 1990 did not join the United Kingdom.She was forced to give it up again in 1992, because it failed to remain within the limits of the IAC.
project, however, continued to develop in accordance with the Maastricht Treaty, reaffirmed the importance of the collective structure.
In 1999, when there was the Euro, the European currency system ceased to exist, despite the fact that the exchange rate mechanism continues to run.
