I’m trying to determine which country has the most stable currency. In other words, which country has a M1, M2, or M3 curve flatter than any other country? My guess would have been New Zealand but I was wrong http://en.wikipedia.org/wiki/Money_supply#New_Zealand
This is similar to asking which government is least aggressive. There is no such thing as a peaceful (unaggressive) government. Similarly, there is no such thing as a stable fiat currency. Of course the only truely stable form of money the world has seen has been and continues to be gold.
I understand all of that. I’m asking today, if you had to move to another country and you wanted to pick the one with the least manipulative central bank which would you pick? I understand that it is always in a CB’s interest to increase it’s country’s money supply but surely some are less agressive than others. Stated another way, which country’s citizens are most educated and successful at pressuring their central bank to not manipulate their currency?
Singapore.
While Singaporeans are likely more intelligent in both economic and noneconomic terms, I think that you also have to take into account the Hoppean preservation instinct of Singapore’s oligarchs, especially that of Minister Mentor Lee Kuan Yew. There’s also the size factor (a city state like Singapore is far more likely to have a “everyone knows each other” situation of social connectivity, which, coupled with stronger Oriental family and social cohesive values, makes Singapore far less of a “Peter vs Paul” (or Chang vs Wang, or Fadi vs Falak) culture. The same thing can be said of China, though to a lesser extent due to their sheer size, massive diversity and recent brush with Marxism.
Probably Switzerland. Until recently the Franc was partly backed by gold.
Maybe Luxembourg… Or Liechsteinstein
I would also say Singapore, as far as fiat is concerned.
Uses Euro.
Uses Swiss Franc.
SOMALIA
We have a winner.
Swiss francs are the most stable.
Switzerland has followed a Hard Money policy under the advisement of Austrian economists in the past.
Swiss honesty would never allow for abusing people’s money.
The Swiss franc has lost 90% of its purchasing power since 1914.
@Prateek Sanjay:
Austrian economists advising the Swiss government? I have never heard of this. Could you give any names or sources?
Swiss politicians are quite capable of abusing other people’s money. They are about as honest as German or American politicians.
Hahaha Prateek, domestic government delusion syndrome much? Other world’s governments are bad, but our government would never do anything dishonourable.
Rothbard’s What Has Government Done To Our Money, Page 96:
All governments are inflationist, but some are less inflationist than others.
I am not Swiss.