The characteristic crisis of the post-1971 floating currency era is the crisis of unstable currencies.
FORBES: Let It Be Known That No Financial Crisis Was Ever Caused by Stable Money
The second method is to take a figure close to where the floating currency is presently trading.
FORBES: There Are Only Three Ways To Reinstate a Gold Standard
First, it has to find a way for Brazil's now-floating currency to cohabit with Argentina's rigid currency board.
But the biggest problem with a floating currency remains the risk of volatility.
This requires a floating currency, which is why we have floating currencies today.
FORBES: The 1870-1914 Gold Standard: The Most Perfect One Ever Created
The yuan, also known as the renmimbi, is not a free-floating currency so the market does not determine its value.
FORBES: China Sends Message To Harry Reid; Weakens Yuan In Protest
The adoption of the euro, disconnected from the economies of southern Europe, shows just how damaging a non-floating currency can be.
But Mexico is alone among the big Latin economies in having a freely floating currency, which gives it more policy flexibility.
The floating currency experiment will eventually be revealed for what it is: smoke and mirrors, obfuscating our long downward trek into poverty.
FORBES: Oil Continues to Rise Because the Dollar Continues to Fall
Indeed, if Mexico, the only other big Latin American economy with a floating currency, is any guide, interest rates may well stay high.
Japan reinstated a gold standard in 1871, 1897, 1930 and 1949, each time after extended periods of a floating currency and sometimes hyperinflation.
FORBES: There Are Only Three Ways To Reinstate a Gold Standard
There was a Panic in 1873, which happened while the dollar was a floating currency, before it was relinked to gold in 1879.
FORBES: Let It Be Known That No Financial Crisis Was Ever Caused by Stable Money
On the bright side, as the Keynesian floating currency experiment fails a little more each year, the pace of new understanding has improved considerably.
That is particularly true of Poland, which is bigger than all the other new member states combined, and the only one with a free-floating currency.
This exchange rate liberalization has continued and while the ruble is not a freely floating currency, it is much closer to being one that it was in the past.
This does not include those countries which, like Russia, seemingly have a floating currency, but one which, in practice, the government tries to keep within a close band with major currencies.
FORBES: 40 Years Of Floating Money, 40 Years Of The Average Worker Getting Poorer
Next year Mexico's economy will be much more strongly placed than it was in 1994, with less debt falling due, a smaller current-account deficit, and a floating currency instead of a fixed one.
Yet now interest rates have gone even higher (this week the central bank raised the overnight rate from just under 30% to 32%), in order to stop the floating currency from sinking out of sight.
The RMB is not a free floating currency like the Brazilian real or the euro, but the beauty behind buying the Chinese currency is that the government has said that it will appreciate the currency each year.
If that flight by Chinese nationals spooked foreign investors enough to deter capital inflows, there could be significant downward pressure on the Chinese yuan under a free-floating currency regime, in which case the currency is now overvalued, not undervalued.
FORBES: Mitt Romney: Fighting the Last Decade's Trade Battles
During that time, a member of the capitalist class, Andrew Carnegie, argued the opposite: that, in fact, a sound currency was the friend of the common man, while a floating currency often gave speculators and financial sophisticates an unfair advantage.
FORBES: Ask Greek Citizens About Soft (Drachma) Money, And If They Like It
The floating currency era began.
FORBES: Mind-Bending Idiocy Is The Reason We Don't Have A Gold Standard Today
What alternatives are there to the present situation, of a Federal Reserve monopoly floating fiat currency?
FORBES: We Are Happily Beyond The Days Of Ron Paul's Lonely Crusades
The upshot is that, far from taking China closer to a freely floating global currency - the offshore trade is actually take it further away, with the central bank intervening in the markets even more than before.
The problem is that free-floating currencies help currency traders but undercut the ability of other businesses to plan their investments.
FORBES: For Japan To Emerge From Its Malaise, It Must Place A Ceiling On The Yen
The present Federal Reserve floating fiat monopoly currency is a certain type of tool to achieve a certain type of goal the goal of prosperity-through-currency manipulation.
FORBES: We Are Happily Beyond The Days Of Ron Paul's Lonely Crusades
By devaluing a currency in a floating exchange rate environment, the result is that trade booms and foreign reserves balloon.
Moreover, Gulf countries might feel more secure about liberalising and eventually floating a Gulf-wide currency, backed by several countries' reserves.
Not surprisingly, when Ecuador announced that it was floating the sucre, the currency spiraled down like a deflated balloon -- just as had happened with the Asian currencies.
应用推荐