GMS 724 Study Guide - Final Guide: European Exchange Rate Mechanism, Economic And Monetary Union Of The European Union, Pound Sterling

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 724
• Professor: HOWARD LIN

Document Summary

Annual government deficit must not exceed 3 percent of gdp. Total outstanding government debt must not exceed 60 percent of gdp. Rate of inflation must remain within 1. 5 percent of the three best- performing eu countries. Average nominal long-term interest rate must be within 2 percent of the average rate in the three countries with the lowest inflation rates. Exchange-rate stability must be maintained, meaning that for at least two years the country concerned has kept within the. "normal" fluctuation margins of the european exchange rate. January 1, 1999, while greece joined on january 1, 2001: those of the original 15 countries not yet participating in the euro are the united kingdom, sweden, and denmark, sweden announced in. 2009, so 16 out of 27 eu countries have now done so: 27 countries use the euro as their exchange-rate anchor, four of which are non-adopting eu members with the rest being in africa or eastern.