Why you can ignore most of what is written about floating rate currencies and why the commentariat always gets it wrong.As long as banks supply liquidity to speculators, speculators can dominate markets. In external trade, as long a central banks provide liquidity to speculators, speculators can dominate international markets.
Currency is a policy tool and the government is the monopoly issuer through its central bank.
Yes, this implies that so-called capitalist free market economies are actually command systems. Central banks chose the policy to follow in any case, although they usually strive to create an illusion that the market is setting prices through competition. Even in setting interest rates, they are supposedly "following market expectations" rather than setting policy. Even Paul Krugman believes this.
Modern Money Matters
A Sterling Performance