Can someone explain why some currencies are pegged to others? It doesn’t seem natural that a sovereign nation’s currency moves according to another nation’s economic forces. They should all float, right?
The world doesn’t like our dollar. Stop giving the damned thing away. Not one more penny to save anyone’s ass. Let the UN and EU pick up the slack....
Pegging one’s currency to another country’s currency that is widely accepted and reasonably stable is like riding a strong horse that goes where he wants, the pegger has to go along regardless of the direction. Letting one’s currency float is like running a marathon, where one’s currency is depends on where it is in the pack. Being ahead or behind is measured against the position of everyone else.
Letting a currency float is more a default position since if all else fails a currency will have to be floated. Desirable? Depends.