The Importance of Confidence

The reason we have had so many financial crises, we've always had them for centuries. But one of the reasons why we've had so many in the 20th century going to 21st century is actually because financial markets are hugely connected. And you see that most in a currency crisis. So some type of value that you put on your currency peg to another currency, then means that once you lose confidence, you start to sell off that currency.