Originally posted by nrubenstein
View Post
Plus letting a currency practically forces more fiscal responsibility in order to insure future trust in the money.
It really all depends on the different characteristics of each country and their actual to perceived economic strength. This differs from country to country in letting the currency slide. Example the Brits in 92' eventually let go of the pound and it only lost 15-20% of its value because people have faith in England and its ability to honor its debts so instead of mass panic people thought of it as a good time to invest again. In fact if they didn't do anything they would of made a profit off their devaluation by keeping their foreign currency reserves.
But what works for England doesn't work for places like Malaysia, Thailand and etc.
Comment