“Currency crises have become more and more frequent in part because speculators can mobilize more and more money. A generation ago, central banks, like the U.S. Federal Reserve System, had more money than anyone else and weren’t afraid to use it to punish speculators. Today, big currency speculators like Mr. Soros can borrow more money than central banks have. But foreign-exchange speculators don’t make currencies devalue; they just create pressure. It is up to governments to fight the pressure or give into it. For decades central banks have assumed the responsibility for managing currencies but, as the big crashes of the 1990s show, it is a task they are poorly equipped for nowadays.” Read more.