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Milton Friedman argued that the best stabilization strategy would be for central banks to buy when the exchange duty is too low, and to sell when the estimate is too colossal â that is, to swap for a augmentation based on their more precise information |
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| Nevertheless, the http://www.managedforexpro.com/ effectiveness of central bank "stabilizing speculation" is doubtful because central banks do not go bankrupt if they make blimp losses, like other traders would, and there is no convincing evidence that they do make a good trading. |
The mere expectation or rumor of central bank intervention might be enough to stabilize a currency, but disturbing intervention might be recycled definite times each year in underdeveloped countries with a dirty float currency regime. Central banks do not always achieve their objectives
