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Strategies & Market Trends : Currencies and the Global Capital Markets -- Ignore unavailable to you. Want to Upgrade?

To: X Y Zebra who wrote (439)	8/20/1998 2:04:00 PM
From: Robert Douglas	Read Replies (1) \| Respond to of 3536

Wow! What a fascinating discussion. What I have gathered is that stable rates of exchange are good because they facilitate business transactions. On the other hand floating exchange rates are good because they put a disciplining mechanism on the powers that are in charge -yet can be abused by speculators. What is the answer? I think it is the same answer that applies to any free market. Try and regulate it enough to prevent abuses but not enough to kill the goose that lays the golden egg. The SEC tries to do that in the United States - uptick rules, margin requirements, limits on program trading all are intended to prevent market abuses. We have dozens of countries trying various approaches to maintaining their currencies. This is like a giant laboratory of trial and error. Everyone will copy the successful approach. -Robert