Would A Tax On Currency Speculators Calm The Markets?

Whatever the values of currencies dictated by today's economic fundamentals, the recent chaos gripping foreign exchange markets seems more an expression of speculative fever than a response to economic developments. The episode illustrates how easily speculative forces can seize control of the currency markets, frustrating central banks and threatening to undermine the dollar--and the incipient global expansion.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.