Corners hypothesis (角点假设 jiǎo diǎn jiǎ shè) refers to the view that countries should get out of the middle and move to the corners when it comes to risky intermediate regimes. In this view, only the two extremes, which are a hard peg or a true float, are recommended by economists.
Part 1: Breakdown of Words
- “Corner” (角点 jiǎo diǎn), or often “角” (jiǎo) in Chinese, as in “street corner” (街角 jiē jiǎo).
- “Hypothesis” (假设 jiǎ shè) as in “permanent income hypothesis” (恒常所得假设 héng cháng suǒ dé jiǎ shè).
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