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Currency Stabilization

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Currency Stabilization 

a state’s regulation of monetary circulation, accomplished through measures such as devaluation, currency conversion, deflation, annulment of currency, and revaluation. Currency stabilization is at best temporary and partial in conditions of the general crisis of capitalism, when the monetary systems of the capitalist countries are in constant crisis, the gold standard in collapse, inflationary paper-currency circulation on the rise, and domestic circulation and international payments in profound disorder (seeCURRENCY REFORMS).



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Monetary experts argued that an agreement on currency stabilization would be highly desirable, but that it required a prior agreement on the dismantling of trade barriers - all the high tariffs and quotas that had been introduced in the course of the depression.
Monetary experts argued that an agreement on currency stabilization would be highly desirable, but that it required a prior agreement on the dismantling of trade barriers -- all the high tariffs and quotas that had been introduced in the course of the depression.
While assets held by governments in another country's currency are nothing new under the sun, the size of sovereign funds fed by "excess" foreign exchange reserves, accumulated by emerging market economies but not needed for short-term currency stabilization and liquidity management, has increased dramatically over recent years.
 
 
 
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