Some observers have attributed the recent crises to the devaluations of the Thai baht, the
Korean won, the Russian ruble, etc., and believe that there would have been no crises had these
countries simply maintained the pegged exchange rates. One variant holds that a currency board
arrangement, a la Argentina, would have saved these countries from the crisis. We believe that
this policy view is completely off the mark, and reflects the fallacy of post hoc, ergo propter
Some observers have attributed the recent crises to the devaluations of the Thai baht, theKorean won, the Russian ruble, etc., and believe that there would have been no crises had thesecountries simply maintained the pegged exchange rates. One variant holds that a currency boardarrangement, a la Argentina, would have saved these countries from the crisis. We believe thatthis policy view is completely off the mark, and reflects the fallacy of post hoc, ergo propter
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