Editing Indexation (section)

==Currency==
The indexation of currency or exchange rate often refers to a country pegging its currency to the US dollar.  In other words, such a country's [[central bank]] would buy or sell dollars so as to maintain a stable exchange rate with the dollar.  Such a policy has been adopted by several Asian countries including China.  If not for the mentioned pegging, the currencies of these countries would rise against the dollar as a result of the US chronic current account deficit with such countries.  But, the Asian countries have a vested economic interest in keeping US demand for their exports high.  That's where the pegging of their currency to the US dollar comes in.  Often the pegging conducted by central banks is pretty discrete and not disclosed in any formal policy statement.  The pegging also can be pretty elastic.  A central bank will maintain an exchange rate within a deemed acceptable range instead of at a specific level.  Over time, the acceptable range may broaden or narrow depending on such a country's economy overall reliance on exports to fuel growth.  Thus, it is challenging to clearly observe the deindexation of a currency.