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> It seems to work ok for most of the rest of the developed world It's the getting there that's the problem, and last time a major Asian economy decided to flo

> It seems to work ok for most of the rest of the developed world It's the getting there that's the problem, and last time a major Asian economy decided to float their currency, didn't work out so well... https://en.wikipedia.org/wiki/1997_Asian_financial_crisis https://en.wikipedia.org/wiki/1997_Asian_financial_crisis

tim333 11y ago
The Asian financial crisis kicked off because Thailand tried to maintain a fixed exchange rate and then was unable to because too many people were trying to change Bhat into foreign currency and they'd run out so let the Bhat half in value in a panic. Then people who had foreign debt and had counted on changing Bhat to make the repayments couldn't and defaulted. Had they floated a bit earlier before things got hairy they might have been ok.