Money: A New Way to Reform

To heads of governments, currency devaluation is a devilish thing, to be resisted to the bitter end. It not only dam ages national pride but also depletes the pocketbooks of voters by forcing them to pay more for imported goods and foreign travel. Despite those draw backs, policymakers are becoming in creasingly interested in a scheme for making devaluations—and upward revaluations—fairly common.

The plan has the particularly unattractive name of "crawling peg," but it has a notably attractive list of advocates. It was popularized largely by Princeton Economist Fritz Machlup, and lately...

Want the full story?

Subscribe Now


Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!