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0 pointsdetritus7y ago0 comments

...and what about all the other countries?

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The currencies of developed countries are pegged to the US dollar and so their reserve banks are just copying whatever the Fed is doing; their main goal is to make sure that the value of their currencies doesn't change too much relative to the USD. All countries reinforce the same economic distortions on a global scale.

eru7y ago

Any evidence of that pegging?

The relatively stable exchange rates can be explained by entirely orthodox inflation targeting together with purchasing-power-parity pretty well.

jondubois7y ago

The interest rates of developed countries tend to follow each other. Interest rates are one of the main mechanisms used to control the money supply.

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jondubois7y ago

eru7y ago

Any evidence of that pegging?

The relatively stable exchange rates can be explained by entirely orthodox inflation targeting together with purchasing-power-parity pretty well.

jondubois7y ago

The interest rates of developed countries tend to follow each other. Interest rates are one of the main mechanisms used to control the money supply.

j / k navigate · click thread line to collapse