Pressure from the US may have pushed China to unpeg its currency from the dollar this week. But how did that peg work in the first place? Paddy Hirsch explains.
Comments
I liked the analogy, however the real substance that I came in for, was not sufficient.
Well, i find this analogy helpful to me. Now i understand what a currency pegging is. Thanks :)
I usually like what he does, but this sailboat analogy is goofy. Had I not already known a little about pegging, I would have learned nothing from this video.
USA dollar currency without backing of goods services or gold it is printed cloth in deep hyperinflation just a question of time when it starts.
a wise country would only peg its currency when theres relative global stability, a good hegemonic power is needed for such stability to prevail or else currencies should never be pegged, if it is pegged they should fix it to gold or other precious metal or objects of value
Killer sign-off phrase
great analogy
i like the anology
Bad analogy
what a ridiculous video
It's one thing to say 'Okay, we will unpeg our currency", but it's quite another if they will actually do the deed. Maybe they will merely let it float in a wider band and intervene as they see fit. Anyway, thanks for all these wonderful videos.
just leave it alone! its way too early to tell if Chinese Government would really not have further adiministritive Intewention, either way its their own decision! all about G20 isn't it.Just mind ur own business~
@DUBAIDREAMZ6
the currency mones up and down as the supply and demand for the currency varies (due to trade or capital flows)