Money Management and Currencies in Crisis
In This Chapter
• Fixed exchange versus floating exchange: which is better?
• Controlling the float: target exchange rates
• The affect of national crises on currency
Our previous looks at how exchanges rates are determined may make it sound as though all countries handle their currencies in pretty much the same way. But despite common factors that are necessary to have a healthy monetary system, there are alternative exchange rate systems available. In this chapter, we look at those alternatives and the strengths and weaknessesthat come with them.
There’s More Than One Way to Skin a Currency
The big decision countries have to make about their currencies is whether to let free-market forces ...