Financial Times FT.com

IMF and EU can help avert panic over Latvia

By Stefan Wagstyl

Published: June 8 2009 03:00 | Last updated: June 8 2009 03:00

When the immovable object of a fixed exchange rate meets the irresistible force of market sentiment, it is usually the market that wins.

But each time a crisis emerges, precedent does not stop the authorities behind a particular fixed exchange rate from arguing that in their case things will be different.

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