----- Original Message -----
Sent: Monday, July 09, 2001 7:12 PM
Subject: Re: [sharechat] nz dollar
I think the problem for
NZ is that it has a currency at all. We are just too small and feeble to
justify our present position. The same can be said for Australia with whom we
have close association. The answer I think is for Australia to establish a peg
to the US dollar and for us to do the same. An American economist out here
recently was extolling the virtues of the Argentine and Hong Kong positions. I
don't see how those two countries can be viewed in the same context. Argentina
has adopted the US dollar and has it's peso fixed at one to one. This was
clearly a mistake because although the US can live with the appreciation of
it's dollar against other countries currencies, Argentina cannot. Hong Kong is
pegged at a much lower level and can probably weather the storm.
Graham Astley
See IRG research reports
