Re: Greenspan Says Gulf Inflation Will Fall If Dollar Peg Is Dropped
rosskolnikov
location: Far end of the Group W bench
listening to: The Tony Rice Unit
registered: 2005.05.24
posts: 1822
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Two reasons:1. The wider scope of the currency, the more it ought to be immune to rapid rise and fall. This in turn encourages safe investment. 2. Ease of doing business.I realize there are problems with that idealistic scenario. One of them is that currencies are at least theoretically tied to some fixed value of something, somewhere even though we are off the gold standard. In today's environment, it would be impossible to unite the various nations behind a set of standards that would allow for a single currency. But at one time it would have been unheard-of to have a Euro zone. Going further back, it would have been impossible to imagine any governmental unit beyond a city state. But these things changed, and I think the currency issue eventually will too.
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.:RS:.
.:RS:.
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rosskolnikov
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Two reasons:1. The wider scope of the currency, the more it ought to be immune to rapid rise and fall. This in turn encourages safe investment. 2. Ease of doing business.I realize there are problems with that idealistic scenario. One of them is that currencies are at least theoretically tied to some fixed value of something, somewhere even though we are off the gold standard. In today's environment, it would be impossible to unite the various nations behind a set of standards that would allow for a single currency. But at one time it would have been unheard-of to have a Euro zone. Going further back, it would have been impossible to imagine any governmental unit beyond a city state. But these things changed, and I think the currency issue eventually will too.
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.:RS:.
.:RS:.
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Greenspan Says Gulf Inflation Will Fall If Dollar Peg Is Dropped – Green Mtn on February 26th, 2008-
Re: Greenspan Says Gulf Inflation Will Fall If Dollar Peg Is Dropped – pkjensen on February 26th, 2008
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