I keep hearing about how the UK gov't is cutting spending, in a desperate and probably doomed effort to bring the finances into something like balance within a reasonable timeframe.
Meanwhile, the New Zealand government continues spending as if it seriously believes the Rapture will strike on Saturday. In the wake of economic disasters (the collapse of one mine, and the announcement after an investigation that fully half of those remaining open have unsafe working practices), natural disasters (the Christchurch earthquake) and financial disasters (still no end to the stream of financial firms needing bailouts), the government doesn't hestitate to reach for its chequebook.
Yet for some reason, the foreign exchange markets love the Kiwi dollar over the pound. Can't get enough of it.
Each time some fresh disaster strikes New Zealand, the dollar rises. It's uncanny, really.
I can only conclude that free markets (I think the forex markets are about as close to 'perfectly free' as any existing market) believe strongly in the merits of heavy-handed Keynesian economic intervention.
Think about that, next time someone tries to tell you that governments shouldn't interfere because free markets know best.