Money sits at the center of almost every economic decision, yet the way a country sets the value of its money is often misunderstood. One of the most important choices a nation makes is how to manage its #exchange_rate. When a country chooses #currency_floating, it allows the value of its #currency to move freely, guided mainly by supply and demand in the #foreign_exchange_market rather than fixed by an official target. This simple idea has wide effects on prices, trade, inve

The GameStop episode became one of the most widely discussed market events of the early 2020s. It was not only a story about one company’s share price. It was also a useful educational case about how #financial_markets can behave when #speculation, #short_selling, #social_media, #retail_investors, and #market_structure interact at high speed. From an economic perspective, the GameStop bubble showed that asset prices can move far away from company fundamentals when collective