We should remember that the notion that flexible exchange rates are an acceptable way to manage the international economy has risen to ascendency only in the last 3 decades or so, a period I believe will be seen by history as a dark age of economics.
Prices have not been set by markets since the end of the agrarian economy A second example of economists’ misrepresentation of the world is the notion that prices are determined by an equilibrium of supply and demand in a market. This notion is so fundamental to economics that it is accepted without question, and not only by economists.