Social Sciences and History / Unit 14 SSH 1338 short lesson, about 20 seconds
Float, Soft Peg, Hard Peg, Merged
Captions available
The idea
A floating rate lets the market decide, freeing monetary policy, risking abrupt moves. A soft peg lets the market decide with occasional intervention. A hard peg fixes the rate and ties monetary policy to defending it. A merged currency gives up national monetary policy.
In practice
Intervention by rates or by buying the currency.
Where people slip
Tobin taxes on capital flows: the anchor's aside.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
Unlocks
- Nothing yet depends on this.
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