Re:Why Henry III's gold penny failed
by Retric on Monday January 31, 2022 @05:10PM
(#30155320)
From your article: “If the Hong Kong Monetary Authority had allowed the peg to go, capital flight would ensue and then property prices would tumble. Then there would be massive defaults on mortgages and then the collapse of the banks and then the collapse of the economy," said Joe Zhang, a Hong Kong-based economist with Credit Lyonnais.
Sounds like it was working quite well. Also interest rates as high as 280% only equates to 0.37% that night, considering how short term the disruption they actually survived quite well. The net result the country made out like bandits from the currency traders attack while others fell. “In 1999, the Government started selling those shares by launching the Tracker Fund of Hong Kong, making a profit of about HK$30 billion (US$4 billion).” https://en.wikipedia.org/wiki/1997_Asian_financial_crisis
Compared to say Thailand's booming economy came to a halt amid massive layoffs in finance, real estate, and construction that resulted in huge numbers of workers returning to their villages in the countryside and 600,000 foreign workers being sent back to their home countries.[33] The baht devalued swiftly and lost more than half of its value. The baht reached its lowest point of 56 units to the U.S. dollar in January 1998. The Thai stock market dropped 75%. Finance One, the largest Thai finance company until then, collapsed.
Sounds like it was working quite well. Also interest rates as high as 280% only equates to 0.37% that night, considering how short term the disruption they actually survived quite well. The net result the country made out like bandits from the currency traders attack while others fell. “In 1999, the Government started selling those shares by launching the Tracker Fund of Hong Kong, making a profit of about HK$30 billion (US$4 billion).” https://en.wikipedia.org/wiki/1997_Asian_financial_crisis
Compared to say Thailand's booming economy came to a halt amid massive layoffs in finance, real estate, and construction that resulted in huge numbers of workers returning to their villages in the countryside and 600,000 foreign workers being sent back to their home countries.[33] The baht devalued swiftly and lost more than half of its value. The baht reached its lowest point of 56 units to the U.S. dollar in January 1998. The Thai stock market dropped 75%. Finance One, the largest Thai finance company until then, collapsed.