CV116: Monetary Base Companion - 2021 Q3
Crypto Voices
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Is the Eurozone a Free-Floating Currency?
In 2005, China's currency was pegged to the dollar. In order to bring legitimacy to their currency as they were coming up in the 70s and 80s and 90s and 2000s, they were owning all the other major countries' debt. So you had the Chinese, Pbok, the People's Bank of China, Central Bank of China holding U.S. treasuries like the Federal Reserve. Instead of relatively holding their own country's sovereign debt, instead of holding Chinese government bonds,. The only thing that will be behind them would be government bonds of the very same denomination.
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