In a world of asset price inflation, it is more profitable to buy an existing asset than to start new enterprises
When the Bretton Woods system of fixed exchange rates tied to the US dollar, which in turn fixed the price of gold, collapsed in 1971, the global economy entered a brave new world of freely floating exchange rates. Proponents of the new arrangement argued that monetary policy would now be liberated to pursue domestic policy objectives, while flexible exchange rates would ensure that the balance of payments equilibrium was automatically achieved without the need for central bank intervention. Currency and financial crises would become a thing of the past. Then, when the holy grail of inflation targeting was discovered, it was thought that optimal monetary policy could make protracted economic downturns a distant memory.
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