Korea Economic Slice: The Fiat System, Asian Money Today and TomorrowSep 7th, 2010 | By Rob | Category: DS Feature, Korea
September 2, 2010 -In 1933 the Gold Standard was pushed aside and the United States Dollar (USD) officially became tied to nothing. Later in 1944, during a gathering of global leaders in Bretton Woods, New Hampshire, international exchange rate policies were put in place to assure the system of “floating” global currencies. Yet it would be the Mr. John Maynard Keynes who went on to define this exchange of paper money as “fiat currency”, or money where the “material substance… is divorced from its monetary value”. More recently it has become crucial to have an understanding of what currencies are worth relative to each other and to actual assets, because the value of this floating paper is changing more erratically every day. Here we re going to look at what is moving Asian currencies now and whether these moves make since over the long term.
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