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The Black Swans I'm talking about are about failed attempts to control the exchange rate by central bank. Fiat currencies are stable until they aren't. https:/
by monort 9y ago
The Black Swans I'm talking about are about failed attempts to control the exchange rate by central bank. Fiat currencies are stable until they aren't.
https://en.wikipedia.org/wiki/Black_Wednesday https://en.wikipedia.org/wiki/Black_Wednesday
https://en.wikipedia.org/wiki/Swiss_franc#End_of_capping https://en.wikipedia.org/wiki/Swiss_franc#End_of_capping
- yxhuvud 9y agoAttaching the value of a fiat currency to something is very unstable in the long run. This is independent of if what it is attached to, be it gold or another fiat currency. Imbalances will simply pile up over time and doom it to fail. This can be exemplified by your examples, but also by the currencies going off the gold standard during the Great Depression.