The Strange Politics of Fixed Exchange Rate Systems
June 04, 2012 at 10:06 AM EDT
Next to North Korea’s 5 year plans, fixed exchange rates must be the worst economic policy ever devised by man: The fixed exchange rate regime of the interwar period was a complete disaster, arguably causing WWII. The Chilean peg of the early 198os led to a massive recession, before they switched to inflation targeting. The [...]