Fixed exchange rates - Githubissues

DaveBackus / Amazon_Global_Economy

Materials for NYU's Global Economy course text: LaTeX files, Stata code for figures, etc. All in one place.

7 stars 8 forks source link

Open DaveBackus opened 9 years ago

DaveBackus commented 9 years ago

We might add a line or two about them leading people to borrow in foreign currency, which makes collapses worse.

DaveBackus commented 9 years ago

Also:

When you run out of reserves, there has to be a fiscal problem in the background or you'd simply borrow more.
What about the other direction? If you're accumulating reserves, you run the risk of losing a bunch of money if your currency goes up (and fx down). Switz good example. Speculate about China?