Please forgive the probable naivety of this question. I am not an economics student I am just trying to understand the currency fluctuations that are currently occurring with GBP as a result of our new chancellor's likely incompetence.
In nearly all the coverage, journalists and economists refer to the "risk" of sterling dropping to dollar parity, or worse, dropping below the dollar. I can understand the latter but why would the pound being equal to the value of the dollar be bad? Why is it a sign of health for the pound to be worth more than the dollar? Dollar parity being bad is presented as a self-evident truth by the media and no one bothers to explain it.
I understand the dollar is the global currency post the abandonment of the gold standard and that advanced economies use floating exchange rates rather than fixed rates relative to the dollar but why must they float 'above', surely the US economy is relatively strong globally so why would it be bad for monetary value to be equal to that?
If we were back to gold and $36 was equal to one ounce of gold or whatever, then surely parity would imply that inflation was flat/negligible and low inflation in popular discussions of economics/political economy is usually presented as a good thing.