Macroeconomia e mais. Recursos para as aulas do Professor Dr. Antony P. Mueller
segunda-feira, 7 de novembro de 2016
Fixed Or Floating? Maybe Our Monetary Choice Is That Simple
A rocket scientist – he designed weapons systems for a defense contractor – once told me that monetary principles were more difficult than rocket science. The evidence supports his view: we have many rocket scientists fully capable of making rockets that fly; and few-to-none monetary experts capable of making currencies that work well. But have you ever seen a book on missile engineering? China’s first gold-based “banknotes” date from the second century B.C. They were made of deer hide. Maybe it’s not that complicated. Although there are a lot of possibilities, in practical terms, it tends to boil down to two choices: fixed or floating. Let’s see what they entail: Fixed: This means that the currency’s ...