Questions tagged [currency]

a generally accepted form of money, including coins and paper notes , which is issued by a government and circulated within an economy.

Filter by
Sorted by
Tagged with
1 vote
0 answers
29 views

Why has the Yen weakened despite lower inflation?

I have recently wondered about the depreciation of the Japanese Yen against the USD (or any other major currency). Currently, a thousand Yen is at around USD 7,75. This is about about a twenty-year ...
user avatar
  • 331
0 votes
1 answer
38 views

How to reconcile 1) the International Fisher Effect and 2) rising interest rates leading to currency appreciation?

The International Fisher Effect implies that a currency with a lower nominal interest rate will appreciate against another currency with a higher nominal interest rate. However, in general, a currency ...
user avatar
0 votes
0 answers
66 views

Why did the Iranian Rial peak suddenly on 1 August 2014?

Search Iranian Rial and click on Max above the chart. Iranian Rial to Pound Sterling: Why did the Iranian Rial peak suddenly on 1 August 2014?
user avatar
1 vote
3 answers
84 views

Did Russia peg Rubles to a Gold Standard?

Did Russia peg the Rubles to gold? I keep reading articles on that. Are there any catches or circumstantial facts, that Russia is not on a gold based standard? Trying to verify these articles. ...
user avatar
5 votes
1 answer
818 views

What are the reasons for Russian Ruble to strengthen in the past few days?

1 USD was about 75 Russian Rubles before the war in Ukraine began. After the sanctions, Russian Ruble quickly declined and 1 USD skyrocketed to 139 Rubles. Now it is back to around 85. What are the ...
user avatar
0 votes
0 answers
28 views

Countries whose currencies have changed

Countries whose currencies have changed Can you highlight the main reasons as why some countries have changed their currencies ? What will be the impact on their economy once they change their ...
user avatar
2 votes
1 answer
87 views

What is the name of this economics tale about the role of money?

I recall this simple tale that summarizes the role of money in economy. I am looking for the original reference to its text, author and initial date of publication. A foreign merchant reaches a ...
user avatar
0 votes
1 answer
54 views

Why doesn't Ukrainian currency suffer from the war?

The value of the Hryvnia, has hardly been affected by the Russian invasion of Ukraine on 21 february. https://www.google.com/search?channel=fs&client=ubuntu&q=hryvnia+to+euro I can think of ...
user avatar
0 votes
1 answer
37 views

Determining a better model for for a new currency

I am in no way an economist (Just a computer programmer) and want to learn if we can use the gold standard (With improvements for using it in the Crypto domain) For example; If we have a physical ...
user avatar
  • 1
2 votes
1 answer
745 views

On what basis do countries repay international loans?

Most countries have their own sovereign currency. Essentially they can print their currency. So how do countries repay their loans? And a similar question would arise while granting a loan to another ...
user avatar
3 votes
2 answers
104 views

What does a currency say about an economy and how to compare them?

I have a pretty basic question about comparing currencies. But I just need to have this cleared up because I can't wrap my head around it. When I want to know for example which currency is stronger, ...
user avatar
  • 163
0 votes
2 answers
177 views

What is fiat currency and what are its ledgers?

How are these ledgers maintained and who does it? A practical example would be very helpful. Thank You Edit: I was learning about the history of money and ledgers. Because Bitcoin is a ledger in the ...
user avatar
0 votes
1 answer
29 views

Should governments print money while the currency gets stronger

In a given situation where a local currency becomes very strong compared to other major currencies (like the USD, EUR, etc...), should the government / central bank leverage the opportunity to print ...
user avatar
0 votes
0 answers
25 views

Is the value of crypo currencies determined against the US dollar?

For example, for a european investor is EUR/Bitcoin implied directly from of USD/Bitcoin or are traded as 2 different markets?
user avatar
1 vote
1 answer
34 views

How does Distributed Ledger Technology-based Central Bank Digital Currency provide efficiency gains and serve as a contingency payment medium?

From reading Lannquist,2020, p.7, they said DLT-based CBDC "could offer diversification in payment “rails”, providing efficiency gains or serving as a contingency payment medium." I am ...
user avatar
0 votes
0 answers
20 views

What does "hybird CBDC" mean?

I am reading literature relating to Central Bank Digital Currency)CBDC), I faced a termed called "Hybrid CBDC" from Lannquist,2020, p.7 I am looking for the meaning of this word but still ...
user avatar
-3 votes
2 answers
47 views

Do exchange rate indicate richness/poorness of a country

Suppose there are two countries, A and B and if 1 unit of currency of A = x units of currency of B And x>1 does that mean that country A is richer or people are well off there?
user avatar
0 votes
2 answers
38 views

Create currency with truly fixed exchange rate

Currency fluctuates depending on supply and demand In fixed exchange rate, any central banks could ties their currency to another country's currency or Gold price. Which, basically, still fluctuates ...
user avatar
  • 3
1 vote
4 answers
131 views

How do non-US governments raise dollars?

I want to understand how non-US governments earn dollars. I tried googling for it but there seems to be no information on the internet. Your help is much appreciated. I am looking for methods that don'...
user avatar
  • 11
4 votes
2 answers
498 views

What is the difference between money and currency?

Is money an intangible concept and currency a way to make it physically present? If not, then what is the difference?? Please dont duplicate it as i have read other answers and then asking.
user avatar
  • 43
2 votes
4 answers
145 views

Are there any benefits of moderate devaluation of a currency?

The value of Indian rupee has decreased over the years. The government apparently makes no effort to stop or reverse it. Instead they focus on other aspects of development. Observation 1- I see that ...
user avatar
2 votes
1 answer
35 views

Impact of new IMF SDR allocations on currencies

I understand that IMF is currently contemplating printing money via new allocation of SDR, and thereby attempting to help increase global liquidity in period after covid. What impact, if any, can ...
user avatar
  • 121
1 vote
1 answer
57 views

Inflation rate of a country vs. currency

The way I understand, inflation rate is the change of Consumer Price Index per given period of time. Is this correct? What's the different between inflation rate of the economy of a country vs. ...
user avatar
  • 113
0 votes
0 answers
17 views

If a poorer country's currency appreciates equal to the dollar would their minimum wage decrease?

Currently $1 = 31.5 Thai baht, and Thailand has a minimum wage of 336 Thai baht/day (42 baht/hr). If the baht appreciates to the point where it is $1 = 1 baht would that 42 baht/hr minimum wage ...
user avatar
  • 1
0 votes
0 answers
51 views

How was sulphuric acid used to back money?

I remember reading in a economics and history book that sulphuric acid production was used as an alternative to gold standard as the basis of the value of currency due to it’s importance in making ...
user avatar
0 votes
1 answer
65 views

Are there any notable exceptions to the Impossible Trinity theory?

I am referring to the theory presented on Wikipedia and The Economist that states: The impossible trinity (also known as the trilemma) is a concept in international economics which states that it is ...
user avatar
  • 113
2 votes
1 answer
62 views

Does it make sense to talk about Bitcoin 'inflation' when little to no goods and services are listed in Bitcoin currency?

I think of inflation as a generalized increase in the price levels of a basket of goods and services. I should add that my understanding presumes that inflation should be measured in the same currency ...
user avatar
1 vote
1 answer
62 views

Why GDP is converted to 2010 $US constant in international studies?

GDP is a widely-used macro control variable in finance-related papers, especially for international studies. I am wondering what is the reason why GDP is converted to $US 2010 as noted by WorldBank. ...
user avatar
4 votes
2 answers
277 views

Is modern monetary theory sustainable?

I am looking around at a lot of the central banks around the world (primarily ECB, Fed, and BOJ) and they all seem to be simply printing their way out of any issues with their economies. As far as I ...
user avatar
  • 191
0 votes
1 answer
29 views

Why the stock market went up when the currency being weakened?

From Bloomberg Market Concept (BMC), in 2013, Japan is traditionally a heavy exporter, especially automobiles. When the yen being weakened, the Japanese automobile being more attractive because it ...
user avatar
1 vote
0 answers
24 views

Does a high current account deficit devalue the national currency?

I've been reading some materials about Belarus's 2011 financial crisis, and a common thread among them is this: Belarus had had a rapidly growing current account deficit, and in 2011 it came to a head ...
user avatar
0 votes
0 answers
35 views

Comparing Real GDP with different base years and currencies

I have a quarterly panel data of several countries. I have taken the data from Fred. Some countries' real gdp is in chained 2010 prices and some in other years (such as 2015 and 2018). How can I make ...
user avatar
-2 votes
1 answer
75 views

How does one country peg its currency to another's? [closed]

For example, Belize has pegged its currency to the US dollar at an exchange rate of 2 Belize dollars to 1 US dollar. How does Belize do that?
user avatar
0 votes
1 answer
84 views

Why isn't high inflation along with robust welfare a 'good' system?

High inflation, by definition, means that the demand for goods and services is higher compared to the demand for currency. In other words, people are more willing to give up currency for goods and ...
user avatar
11 votes
4 answers
3k views

Are financial markets "unique" for each "currency pair", or are they simply "translated"?

This is something I've been long wondering about. Let's say that I have statistics showing the daily closing Bitcoin price in USD since early 2009. Great. Now, if I wanted to get the daily closing ...
user avatar
  • 111
0 votes
1 answer
39 views

Creating a pragmatic, useable (not theory heavy) proxy for a currency basket for a set of economies

This is currently, a gedanken experiment, but may well form the basis of a whitepaper - or better still, an actual project. I am trying to come up with a practical way of creating a "currency ...
user avatar
1 vote
1 answer
42 views

Big Mac Index based on other products or services?

The Big Mac Index compares the cost of a McDonalds Big Mac in different currencies around the world. In doing so, it provides: an informal way of measuring the purchasing power parity (PPP) between ...
user avatar
  • 703
1 vote
1 answer
168 views

What are the advantages of using euro for Greece?

Theoretical benefits of using unified currency are well known and described in many places like https://www.economicshelp.org/europe/benefits-euro/ However, reality (or more comprehensive analysis) ...
user avatar
1 vote
0 answers
41 views

What is the effect of currency depreciation on import prices?

In Macroeconomics: A European Perspective (3rd ed., Blanchard, Amighini and Giavazzi), when discussing the reason for differences in the GDP deflator and the HICP for the EU, it states the following ...
user avatar
0 votes
1 answer
37 views

Why doesn't Dollar exchange rate go down?

I am from India and my question is related to conditions based in India which may be applicable to other countries as well. Dollar value is gradually rising in India. I was trying to understand why. ...
user avatar
0 votes
1 answer
41 views

Currency and GDP

USA's GDP (at this time) is ~21 trillion dollards, and UK's is ~2.8 trillion dollars, then how come UK's currency is more than USA's. By that I mean, 1 GBP gets you more than 1 USD.
user avatar
-1 votes
1 answer
45 views

Is the debt owed to resourceful producers by resourceless consumers practically irrepayable?

Here is my argument for the debt owned by resourceless consumers to resourceful producers (as currency, bonds, loans, or other means). Is it correct? If not, where am I going wrong? Economic value is ...
user avatar
0 votes
3 answers
166 views

How can a currency be tied to a commodity like energy?

To make a stable (crypto)currency it basically needs to be tied to a thing of value that can not be just flooded onto the market with minimal effort. I think energy is the ideal thing to tie a ...
user avatar
0 votes
1 answer
46 views

Why don't Governments do away with the optics of taking on debt against new currency, and instead issue a limited currency every year (say 5% of GDP)?

Governments engage in the optical illusion of taking on debt against issued currency. The debt is effectively owed by the Government to itself. The value of the debt is completely controlled and ...
user avatar
1 vote
1 answer
34 views

Oliver Hart said that financing deficits by printing money can lead to hyperinflation "once the economy is close to full capacity". What does he mean?

In response to a poll on Modern Monetary Theory, Nobel Laureate Oliver Hart said that Governments financing deficits by printing more money "can quickly lead to inflation or even hyperinflation ...
user avatar
0 votes
2 answers
50 views

For stability, is there a limit to the sovereign debt that a Government owes to itself against issued fiat currency?

Looking beyond the optical illusion of Governments owing debt to Central Banks, Governments effectively owe themselves the sovereign debt created against issued fiat currency. By definition, there ...
user avatar
3 votes
2 answers
159 views

Can banks 'create' money on their own or do they need help from other banks?

My current understanding of the banking money multiplication process goes as follows: Alice comes along and deposits 100 cash into Bank A. Bank A gains 100 in vault cash (reserves) as an asset and 100 ...
user avatar
1 vote
2 answers
77 views

Is it theoretically possible for a singular national currency to exist under a free banking system?

Free Banking is a proposed monetary system, usually by Austrian Economists, as an alternative to the prevalent Central Banking system. Under this arrangement, commercial banks would issue their own ...
user avatar
3 votes
2 answers
502 views

Is there any pressure to keep currency exchange rates around 1?

I notice that for any pair of currencies, the exchange rates seem to stay around 1 (as opposed to, say, 1,000,000). This is no longer the case if one country experiences an economic crisis that ...
user avatar
4 votes
1 answer
146 views

How digital currency (like Bitcoin) proponents solve the problem of its high volatility to make it a good candidate to replace fiat?

I have recently read an article about a family living with no fiat currency for several years. Indeed there are lots of advantages of using a digital currency. I am wondering if having an important ...
user avatar
  • 247

1
2 3 4 5
7