The original motive behind the ERM

The original motive behind the ERM was to provide short-term monetary stability, which was seen as important in stimulating trade and investment within the EU. The system survived because the limits on exchange rate fluctuation were not excessively rigid in practice, and currencies were realigned when necessary. There were 11 realignments from 1979 to 1987, in every instance a devaluation of one or more currencies against the deutsche mark.