Exchange Rates a Primer
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"Exchange Rates: a Primer"
-Robert L. Bartley
Robert L. Bartley's article "Exchange Rates: a Primer" is an explanation on how the there is no understanding about exchange rates, even from our highest political men. He goes on saying how they not only do not understand anything to do with exchange rates, what they think they know, is wrong. There are then three myths he talks about that if the political leaders would follow, if maybe they would learn to understand these myths, then possibly there would not be such a collapse in our currency and exchange.
Myth one is that currency is a "free market." Yes you can go on a trading floor and buy and sell euro and yen as you could with free markets such as wheat and oil. But that still does not make it a free market. To be a free market, there needs to be a freedom of entry. Free market examples would be grain or oil, where when the returns if these merchandise rise, new businesses will emerge...