If the value of a single unit of a supposed currency varies between $9,000 and $11,000 in a day then it is not a currency because it lacks one of the essential characteristics: it is not a store of value.
Let’s call it a con trick instead.
Sterling’s fall following the ERM exit did trigger an export recovery, says Kit Juckes at Société Générale. It plunged nearly 35 per cent against the dollar in the six months after Black Wednesday, driving up export volumes and wiping out the trade deficit. Its decline “sowed the seeds of a better economy”.
Value of the pound in your pocket declines by over 90% since 1973
Unless we want to place entirely too much weight upon “day” we’d have to conclude that fiat money is a con trick, wouldn’t we?
And there’s the other way of looking at this too. The value of the $ has varied by some 20% in a day. Thus it’s not a store of value, is it?
Remember, this man teaches economics in a British university.