News for hackers. Stuff that matters.
Re:Why Henry III's gold penny failed by AnimalMuppet on Monday January 31, 2022 @05:28PM (#30155593)
I'm fairly sure that the fixed exchange rate didn't cause the problems. But I think the interest rate craziness shows that the fixed exchange rate sure didn't help. It took away a knob that they really could have used right then. Since they didn't have it, they had to go insane with the interest rate to try to defend the currency at the fixed price. That didn't make it easier to handle the rest of the crisis.
Re:Why Henry III's gold penny failed by Retric on Tuesday February 01, 2022 @11:25AM (#30164791)
The interest rate was set in response to a short term economic attack by several investors. But the benefit was consistent outside of that time period.