CJF Read of the Week – Rogue Economist: “Similarity of China’s USD Peg with the EMU”
The Rogue Economist, located in Canada, wrote a provocative piece discussing the similarities between the USD/Yuan peg and the EMU construct. I agree with Rogue that currency pegs and distortions lead to predictable real world economic outcomes that become evident in the balance of trade. Many financial market participants confuse cause and effect when identifying the cause of an imbalance and debating the proper solution.
Leave a Comment