Corners hypothesis (角点假设)

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).
  • “角” (jiǎo) as in “triangle” (三角形 sān jiǎo xíng), “angle” (角度 jiǎo dù), or “nook” (角落 jiǎo luò).
  • “点” (diǎn) as in “make comments” (点评 diǎn píng), “points” (点数 diǎn shù), or “ignite” (点燃 diǎn rán).
• “Hypothesis” (假设 jiǎ shè) as in “permanent income hypothesis” (恒常所得假设 héng cháng suǒ dé jiǎ shè).
  • “假” (jiǎ) as in “if/suppose” (假如 jiǎ rú), “counterfeit money” (假钞 jiǎ chāo), or “fake goods” (假货 jiǎ huò).
  • “设” (shè) as in “settings” (设定 shè dìng), “design” (设计 shè jì), or “facilities” (设施 shè shī).