Hacker News new | past | comments | ask | show | jobs | submit login

Because currency markets are generally negative towards government intervention and economic protectionism. You can say that's reasonable or unreasonable, but it's unquestionably true. The UK has suffered over the last six months for example from not increasing interest rates faster. An increase in interest rates would have been unpleasant for homeowners (I know, I am one), but it would have strengthened the value of the pound against the dollar, and that would have helped with energy costs significantly as it would have increased the UK's ability to buy.

I'm not really sure the Irish Potato Famine is relevant, given Ireland barely had it's own currency at the time (British pounds were in widespread use, and the value of the Irish pound was fixed to the British one).




Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: