Currency pegs

Pressure from the US may have pushed China to unpeg its currency from the dollar this week. But how did that peg work in the first place? Paddy Hirsch explains. #MarketplaceAPM #EconomicExplainers
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[@CityGamer1337]

11 years later and this is still a really good explanation

[@oussematoussli8085]

13*

[@MarlenaAlicea1024]

I think this was a great analogy. It helped me understand the benefits of pegging far better than my current textbook. I don't think it was goofy at all, it helped put this in terms I could relate to.

[@Astridah_M]

Over a decade later this video is still relevant and was very insightful. Thanks for sharing

[@timothyphoenix4209]

This is actually a pretty solid analogy

[@NorahAlmogahed]

thank you sir, that was really easy way to understand.

[@DrRock2009]

Spot the ex-Royal Marine....:-)

[@ssoltani22]

That was the dopest mic drop I've ever seen! :D

[@saeedkhabti1842]

Brief, Smart & Amazing

[@rhitamdutta1996]

Best video that I've seen on the topic.

[@Chucky4744]

Super good explanation thank you

[@hitesh07ful]

Fantastic explanation.

[@el-sig2249]

Hi Paddy. Love your presentation. But hearing you talk about badly needing a drink does leave me badly needing a drink! :)

[@alejandraalmazan2437]

I liked the analogy, however the real substance that I came in for, was not sufficient.

[@5astelija75]

How much substance do you expect from 5-minute clip

[@alparslankorkmaz2964]

Nicely explained.

[@remremhazem2011]

Does that mean that pegging of one currency to anothet makes the two currencies equal in value to each other?

[@rs-tarxvfz]

This video is part of my understanding spree of world and geo-politics as whole.
How the world monetary systems work.
Why the part of world is rich or poor?
How money controls world?
How a country runs its economy?
How does inflations or deflation "Feels like" in day to day life.
I think everybody should learn how the money controls their life.

[@Elmcharfi]

Did you find answers to the above mentioned Qs?

[@Tweetogreggieb59]

2 thumbs up good and reliable content From this host consistently videos recommended.

[@demonshri8403]

That last moment 😁😁
I thought "hero"

[@shrimpanzee001]

So why would a country peg its currency to gold instead of another currency?

[@Sirius283]

Great analogy ! Thanks

[@themaestro9527]

By George, I think I've got it

[@thereeb2141]

yoh thank you. this was so great. Easy to understand. Thanks a million

[@kuwaleetalukdar4129]

This helped me so much. Thank you.

[@hangchen]

Knowledge never expires. I come to understand crypto pegs.

[@virajgaikwad5472]

Thank you so much sir. That was very helpful !

[@CristianoBinRonaldo]

Sir pls explain why the government of Sri Lanka holding USD low and advantages and disadvantages of it

[@GraniteInTheFace]

Are currency pegs a form of currency manipulation?

[@robertlopez2113]

So it means that they move at the same speed, does it mean they hold the same value? Equally?

[@sarthakagarwal2853]

That was sooper great man!! Kudos!

[@googooboyy]

Why do all videos end with needing a drink?

[@Mpivovitz]

And then you wreck your economy by constricting your domestic money supply when being forced to do so to balance. The private sector in those economies also starts investing in the currency they are pegged to and require more reserves of said currency, one of which they do not control. Floating exchange is always better than a fixed exchange, just look at the economic health of fixed vs float nations.

[@keithluton1745]

I'm just trying to get the exchange rate for Kenya, Africa before I go there on a Missionary trip. So, what is $5.00 worth, or $100.00?
Sounds like a simple question, but I can't find an answer here.

[@mariusntamagara5647]

Thanks for your documentary on fanny Mae is a good lesson that inspire us to request for a training center in AFRICA to help people moving on the integre development and independantly speed their stability.

[@SinghFamily5]

great analogy

[@HolloMatlala1]

I know it's not simple as it looks, but hey think the AU average of currencies should start here before rash decisions.

[@TGUlricksen]

Who controls the Flag Ship speed tho?

[@abdel-ilahabdallah2012]

Great explanation, thanks m'dude

[@nishantdhama5582]

I just wish i could give this video a million likes😂

[@ishita8486]

Yo how's this different from dirty floating?

[@simarsingh2983]

Brilliant

[@michaelschindler2870]

great!

[@soutv8539]

I get it, but the biggest question is then, how did the lebanese pound lose 90% of its value when its always been pegged to the USD??

[@vishy099]

x H$ = 1 F$ [H$=home currency, F$=foreign currency]
* If H$ increases in value, i.e. x goes down --> central bank increases H$ supply by buying F$.
* If H$ decreases in value, i.e. x goes up --> central bank decreases H$ supply by selling F$.
Key: match increases with increase & decreases with decrease!

[@ankitaggarwal4468]

nice teaching

[@ybalanekhylac.422]

you save me, thank you so much

[@synchrocardinal]

lmao love the outro

[@chekalinda1004]

what’s with economists and their impressive whistling skills

[@2793alcy]

Killer sign-off phrase

[@chemchampa]

Marketplace APM, can you tell that what's said at ~2:50-3:00 is pretty much what today's Brexit has to do with? Or can you say, one of the reasons why Brexit is happening is because of that? 🤔
#marketplaceapm #brexit

[@scrambledID]

nice, culture appropriate example. classic :p

[@JunoMcCluskey-n8r]

love you my king

[@cubanmark]

a wise country would only peg its currency when theres relative global stability, a good hegemonic power is needed for such stability to prevail or else currencies should never be pegged, if it is pegged they should fix it to gold or other precious metal or objects of value

[@abhinavitsmebellamy]

Thank you, Sensei!!

[@droidgracie4121]

Watching this after Saudi Arabia ditched the Petrodollar in June 2024.

[@mukmuk1989]

i like the anology

[@lloydcoskey3406]

I usually like what he does, but this sailboat analogy is goofy. Had I not already known a little about pegging, I would have learned nothing from this video.

[@marketplaceAPM]

lloyd coskey I agree, it is a bit goofy.

[@ahmediszair8316]

Marketplace APM very goofy

[@ismatullorahimov3445]

There are so many other people being thankful to him for using that analogy as it makes the concept easier to understand. He can never please everyone, but the fact that he tried to think of an appropriate analogy to make it easier on us, and not just give us the standard definition, is worthy of respect. He's an exemplary educator.

[@ismatullorahimov3445]

@@marketplaceAPM Yes, but it makes sense))

[@Elmcharfi]

@@marketplaceAPM disagree it's very clear when you visualize it

[@sofiavitoriaeedneiaguerrei2205]

I Thought te análoga nas fantastic to my understandment

[@jpkm123]

@DUBAIDREAMZ6
the currency mones up and down as the supply and demand for the currency varies (due to trade or capital flows)

[@inquisitive871]

Bad analogy

[@JakeSee]

Instead of spending most of the video talking about analogy, would be better to just give actual examples of how to control the supply of money.

[@dx6789]

@DUBAIDREAMZ6 Demand and supply

[@moon3173]

stupid analogy that doesn't add any value

[@MrThe1234guy]

Maybe you don't really get it. Its okay half of people don't. That doesn't make you stupid, just average.

[@AlphaDad]

what a ridiculous video

[@ricksonpat4451]

i hate this example

[@gheithothman4789]

great explanation, you got me to subscribe to your channel in just 1 minute, well done

[@ajai.a2374]

Great explanation thank you