Quote from: ColdHardMetal on May 21, 2011, 05:43:27 AM

Quote from: chame on May 21, 2011, 05:38:04 AM

for a peg to work... do they 2 currencies need to have dependencies on each other?

All currencies have dependencies on each other.

edit: Exchange rates are all about relative supply and demand for the 2 currencies you are looking at, so they have nothing but dependency on each other when you get right down to it.

There is an exchange rate between apples and lamps. I wouldn't say they have a dependency on each other.