Tag Archives: currency peg

The fate of pegs is always the same because there is this thing we call the business cycle. Armstrong EconomicsThe Gold Standard Fell As All Currency Pegs DoMartin Armstrong

China needs to keep growth high enough to maintain social stability, but also must preserve external stability via the renminbi’s exchange rate. How China manages its currency during its economic policy shift could have important global consequences. China is not sovereign in its currency since it pegs to the dollar. Currency sovereignty requires floating the rate whereas as peg sets a fixed rate. This means that China domestic policy is constrained by have to manage the exchange rate...