In the previous chapter, I noted that it was both natural and mistaken to look upon the finances of a country as if it were a household. It is equally misleading to think that a country’s finances can be viewed in isolation from those of all other countries it trades with and in which it invests money or raises capital. Yet that is precisely what the political class and the general public naturally do.
KeywordsForeign Exchange Hedge Fund European Central Bank Price Discovery Trade Surplus
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