Post
Topic
Board Economics
Re: currency peg (ala Saudi riyal)
by
FreeMoney
on 21/05/2011, 06:00:47 UTC
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.