“As a result, the market started to do much of the stabilizing for us, selling sterling when it approached DM3 and buying sterling whenever it dipped below it.” The above quote is from The View From No. 11, Nigel Lawson’s autobiographical account of his tenure under Margaret Thatcher as England’s Chancellor of the Exchequer. Lawson’s words deserve special attention given ongoing confusion among monetary types about currency-price stability, or lack thereof. Particularly among those who believe (wisely) that the dollar would be a much more credible currency if it had a stable definition, the view is that the Fed could and should use open market operations to maintain the dollar’s price stability in terms of a gold ou… Click below to read the full story from Forbes
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