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#1616: Gourdes: Gill comments
From: mark gill <email@example.com>
> The gourde is not tied to the dollar. It floats based on the levelof
> remittances and the level of deficit spending by the government of Haiti.
> Printing more gourdes, absent economic growth (i.e. the same amount of
> dollars), means more gourdes to the dollar and hence a devaluating gourde.
> Which is what we have now as the government starts running the printing
> presses in order to finance public works projects in advance o fthe
> The exchange rate is merely the cost of a dollar/yen/euro if you are
> holding gourdes, or visa versa. If you produce a surplus of something
> (gourdes), its price (exchange rate) goes down.