Let's do the other way now, the matched-book dealer. Why does this guy do it? What's in it for him? Why is he willing to do this? He's also a profit-making person but he has a different strategy. He is, [COUGH] he's willing to enlarge his book in his liquidity exposure. His liquidity exposure has to do with the size of his book here. And you can see what the problem is. That he's got all of these demand deposits, if you were, for dollars, which could be withdrawn or something like that. That's not so pleasant. And that's definitely liquidity risk there. He's hedged the price risk, okay? But this is borrowing short and lending long, okay? In the world reserve currency, and so there's risk associated with that, okay? He will insist on buying in order to make this, on buying spot more cheaply than he sells forward, okay? And what that means is that on this axis here, if we put forward over spot here, okay? There is going to be an upward sloping, bid ask curve, for this guy. And the larger his book, the larger his equity exposure, okay? The higher he's going to want that ratio to be. In order to expand his book there has to be, he has to pay less for the spot position relative to the forward position in that. There may also be some widening of this bid ask too and there is in a crisis. You saw in the financial crisis, the widening of these spreads became very large as well. I'm talking about normal times now, so we're not going to do that. All right, so yes and let's put in the lines here. So there's. So the dealers, these dealers here, the matched-book dealer and the speculative dealer, are willing to expand their book, that is to say to do these trades, in order to help these countries, okay? As long as there's some expectation of profit in doing so. Now notice, the contrast with the diagram above which is the gold standard world, okay? We had these back stops by the central bank, the gold points, okay? We have the bank rate, okay? We don't have any of those things here. So, you let me draw this up without telling you what the outside spread is. And really, that's what makes this whole model go, right? You gotta know what the outside spread is in order to know where you're going to have that thing intersect. And the same here, okay? So, this just raises the question. If the Central Bank isn't setting that outside spread, who is? And where's this is all coming from? The key point is covered in transparency, okay? To realise that F over S, okay, is equal to (1+R star over 1+R). I'm letting F over S move in order being driven by the matched- book dealer looking for profit, okay? But what's really happening behind the scenes, is that there has to be movement in the term interest rates, okay? In these two countries. As well. And in particular, this one in the denominator is the United States, okay? So forget that. Let's take that as a constant, okay? The United States is not doing anything. So we're really talking about the interest rate in this foreign country here. The term interest rate in this foreign country. We have an upward sloping curve in interest rate space. Just like that. Just like that, okay? And we have a story that the dealers are willing to expand their balance sheets, okay? And in doing so, the term rates get bid up. The term rates in the deficit country get bid up, okay? So now we are starting to get to the point, okay? The Central Bank in this country, cares about these term rates, okay? Cares about these term rates, here. So, this could easily be, this is an interest rate space here. Our star space here. Most central banks, and we'll just, for the sake of argument, say all central banks, don't set term interest rates, okay? They set overnight interest rates, right? But there is a conceptual link between overnight interest rates and term interest rates. And what is that link? We started with it right? The expectations hypothesis of the term structure. The expectations hypothesis of the term structure says, that in a world without liquidity premia, you would expect that term rates are just the expectation of the rollover of the overnight rate. So, if the Central Bank moves the overnight rate and is completely credible about that. That should also move the term rate.