New Currency Valuation Method Protects Economies from Manipulation and Instability
The article discusses how central banks can use terms of trade calculation to help determine the value of a country's currency. This method sets boundaries for the currency's price based on its trading position with other countries. By using this scientific approach, the currency price can be kept stable and fair, without being manipulated by special interest groups. This system still allows the free market to determine the final price of the currency, but with limits in place to prevent excessive fluctuations. If the currency price moves too far outside these bounds, the central bank can step in to stabilize it and protect the country's economy.