in particular, are
seen to display a clear interest in, and preference for, strong and stable currencies
backed both by implacable independent central banks with hawkish anti-inflationary
credentials and governments wedded in theor y and in practice to fiscal moderation
and prudence. Any departure from this new financial or thodoxy, it is assumed, will
precipitate a flurry of speculation against the currency and a haemorrhaging of
investment from assets denominated in that currency. Governments provoke the
w rath of the financial markets at their peril