Posted by: michaeldavidpower | November 18, 2009

Fixing your currency need not be leftist!

Since 1983 Hong Kong has fixed its currency at HK&7.80 to the US Dollar. Actually they first fixed their currency in 1971 and then, after a brief dalliance with a floating regime, refixed it in 1983.

The Heritage Foundation of the US – not known for its leftist views to say the least! – currently ranks  Hong Kong as the freest economy in the world, an accolade it has awarded the former British Colony many times in the past.

Conclusion: Having a fixed exchange rate is far from automatic evidence that a country is – in its economic behaviour – behaving in a ‘leftist’ way.

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