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The differences being for large states that it was/is a question of how much you want to spend defending something, rather than how much you have, unless you ar
by sgt101 4y ago
The differences being for large states that it was/is a question of how much you want to spend defending something, rather than how much you have, unless you are under attack by another state. And, for a large state run by rule of law it's not a question of going to 0 as for stable coins, instead it's going down by 20% (worst case).
- pjc50 4y agoIndeed. A currency peg is effectively an import subsidy/export tax arrangement. If the balance of payments is sound, it's easy to maintain. Otherwise it isn't, as you will gradually run out of export tax to pay for the import subsidy.