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Speculative Deviations

In: The Case against Floating Exchanges

Author

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  • Paul Einzig

Abstract

Even if, through sheer coincidence bordering on miracle, the inflow and outflow of capital happened to balance at the exchange rate at which imports and exports are at equilibrium, it would not follow at all that the exchange rate would necessarily become adjusted to its trade equilibrium level and would settle down around it. For there are also the speculation and arbitrage factors to reckon with. This chapter is concerned with the former.

Suggested Citation

  • Paul Einzig, 1970. "Speculative Deviations," Palgrave Macmillan Books, in: The Case against Floating Exchanges, chapter 0, pages 77-84, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-00681-6_9
    DOI: 10.1007/978-1-349-00681-6_9
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