The Exchange Rate (index)
Keywords: Macroeconomics & Money;
A correspondent, R.B. Chrystal, to The Listener asked
Why do we have a floating currency and what advantage is it to the country in general? To me it seems that all it does is allow another tier of parasites, ie currency speculators, into the system as well as create more uncertainty for our exporters. The strength or weakness of our dollar seems to bear very little relationship to the strength or weakness of our economy, as was touted when it was floated.
My answer, published in The Listener of 1 August 2003 is given below. Go to Brian Easton’s response I asked another economist to look at my reply. He thought it fine but also offered his account, which does not address the respondent’s question directly, but gives greater insight into official thinking. Go to another economist’s response <