Flights to quality: Unsettling international events can facade to a "flight to quality," with investors seeking a "safe haven". There will be a greater demand, thus a exceeding price, for currencies perceived as stronger over their relatively weaker counterparts. The Swiss franc has been a traditional safe haven during times of enemy prisoner of war or productive uncertainty.
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Controversy about currency speculators and their effect on currency devaluations and national economies recurs regularly
- Nevertheless, economists including Milton Friedman have argued that speculators ultimately are a stabilizing influence on the mall and perform the important function of providing a market for hedgers and transferring risk from those people who don't wish to bear it, to those who do. Other economists such as Joseph Stiglitz consider this bickering to be based aggrandized on politics and a free market philosophy http://www.forexsignalsprovider.com/ than on economics.
