Tag Archives: fixed exchange rate

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

US President Donald Trump wants to compress the United States trade deficit and enhance the competitiveness of domestic manufacturers by using tariffs to raise the price of imported goods. And the fixed exchange rates he needs to achieve that goal are the real reason behind his nomination of Judy Shelton to the Federal Reserve Board....  Project SyndicateTrump’s Cross of Gold Barry Eichengreen | Professor of Economics at the University of California, Berkeley, and a former senior policy...

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...