A Primer on How Currency Manipulation Worked – NYTimes.com. “The Fix” Video
Finance professionals (including academics) should start replacing some terms, which may date back a century, used in our field. One example is the widely used term “fix” that refers to the determination of market-clearing (in economics terms equilibrium, i.e. when demand equals supply) price and/or rate. Recent multi-billion legal settlements regulators achieved show that the processes of “silver fix”, “gold fix” and “currency fix” were (allegedly?) manipulated by the market participants, i.e. banks and dealers. In Main Street, the word “fix” may carry a bad connatation (e.g. “game was fixed”). Why should Wall Street continue using terms which may suggest that financial markets may be unfair, especially when the recent events bolstered potential notion of this unfairness since some big banks, dealers and traders are charged with “fixing the fixes” or “manipulating the fixes”! These reinforce the bad connatation some finance terms may carry, “silver or currency fix was fixed”!!!
#currencyfix, #thefix, #manipulation, #fixingthefix