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.
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How could the Roman sestertii/sesterces be converted into modern terms (say 2017 US$)?
Of course, the value of the sesterti must itself have fluctuated over the centuries it was in use. And so if I must narrow it down, I am particularly interested in its value during
the time of ...
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Covered interest rate parity: the forward contract is not risk free
Covered interest rate parity (CIRP or CIP) can be formulated as:
$$
(1+r_{f,Home})=\frac{S_0}{F_{0\rightarrow 1}} (1+r_{f,Foreign})
$$
where $r_f$ are risk-free rates in the home and foreign countries,...
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Real time data map about the amount of a currency that are held in the world ?
Where can I see in real time data about the amount of a currency that is held in central banks (and maybe other significant places) ? A map would be great.
I would like to know if there is an ...
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What is the effect on GDP when foreigners buy lots of domestic bonds?
I am trying to figure out the effect on GDP of foreigners buying lots of domestic bonds. From what I understand, when foreigners buy lots of domestic bonds:
They need to convert their foreign ...
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How would a Central Bank Digital Currency be different from a private bank deposit?
Both are digital, both can be transferred digital, and both are denominated in the same currency. A CBDC is "a direct liability of the central bank, rather than of private banks or coin issuers&...
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Why was the massive outflow of silver before the first Opium War so bad for the British Empire?
TLDR
I am a person without any significant knowledge of economics, so even though I have (I suspect) some partial answers, I need a better understanding of these.
Background and question
In accounts ...
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Was the council bill system used in British India a wealth extraction mechanism?
Jason Hickel says that the council bill system used to pay exporters of Indian goods during the British Raj was a mechanism by which Britain extracted wealth from India without giving India anything ...
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Currency vs purchasing power?
When I search the internet about which is the strongest currency, the answer is the currency which buys more from other currencies. For example if 1 euro can buy 10 dollars then euro is a stronger ...
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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 ...
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Log deviation from steady state - understanding a journal paper
I hope a question like this is fair game on this website!
I'm doing some research for my thesis, and have come across what seems to be a pretty simple model - two countries, A (representing the USA) ...
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Calculating the amount paid for a loan in today's dollars
So I was trying to figure out the amount paid for a loan in today's dollars using two different methods but they give me different results. I was hoping that someone could explain which method is ...
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Why was there a sudden rise in trade-weighted US dollar value in 2014-2015?
I was trawling the web and happened upon this graph: https://fred.stlouisfed.org/series/DTWEXM . The value of the trade-weighted US dollar was going steady until 2014-2015, rose rapidly, then it sort ...
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Currency Denominations Affecting Prices
My question regards how currency denominations might artificially affect prices. For example, a baseball game that determines a good pricing scheme for parking would be charging 7 dollars per person. ...
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What will happen to the reserves at the Fed?
Banks currently have 2.7 trillion Federal Reserves that they hold at their Federal Reserve account. It's part of the monetary base and these reserves were created when the Fed purchased bonds in their ...
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How is a central bank able to control currency supply in an economy which has other banks and non-physical currency?
As I understand, in most economies, the central bank is supposed to be in charge of monetary policy, which in part means that they are supposed to be the only authority which can increase the amount ...
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Determining a better model 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 ...
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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 ...
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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 ...
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US dollar the "Safe Haven"
Could anyone give me a detailed description on how the US dollar serves as the "safe haven" of assets when there are market stresses?
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How is seigniorage redistributed in the Eurozone?
An ECB page notes that:
As euro banknotes travel freely across borders, at any one time the number of banknotes in circulation registered at each national central bank can vary enormously. The ...
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"Increasing trade barriers causes a country’s currency to appreciate"?
Mishkin (2016, p. 476) writes:
Barriers to free trade such as tariffs (taxes on imported goods) and quotas (restrictions on the quantity of foreign goods that can be imported) can affect the ...
user14083
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What are the issues with currencies backed by commodities?
I have seen it suggested that currencies that are backed by a commodity are generally considered to be a bad idea in most cases. However, I have done a bit of my own research into representative money ...
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When/Why would a country want to create its own currency?
A while ago I asked how countries make a currency and give it value, specifically pointing out that I wasn't concerned about when/why such a thing would be done.
Well, now I'm asking the exact ...
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Can a currency crisis be the proximate cause of a debt crisis?
I'm just curious whether there are any historical examples of a currency crisis in a country (speculative attacks leading causing a sudden devaluation of currency) leading directly to a debt crisis?
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In a closed system, what is the relationship, if any, between currency supply and market capitalization?
Assuming:
A world in which the market value of publicly traded companies is known
Any transaction to buy or sell stock of said companies can only be consummated with a new currency X, which is freely ...
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What are some benefits of local currencies?
Lets say that we have in my country Greece there is an Island Crete that it has big production (agriculture,small banks etc.) and produces big surplus compared with other parts of Greece and the ...
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Can a weaker currency be used to offset lower productivity of labour in an economy?
Can a weaker currency be used to offset supply-side (specifically low productivity of labour) problems of an economy to restore international competitiveness?
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What's the equation of currency fluctuation?
Preamble:
Today the rate of EUR is 82.09 in BDT ( Bangladeshi Currency) and two hours later it's 82.50 ( I hope, it's increasing). But why does this fluctuation just keeps happening? Looks like the ...
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How does foreign exchange settlement work?
How does the settlement of trades in foreign exchange work?
For example, if I am a large company with money in dollars and I buy another currency like Deutschmarks with my dollars, how does the money ...
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How is the banknote denomination designed?
Recently India demonetized their 500 and 1000 rupee notes. As a replacement a new 2000 rupee note was introduced. This has resulted in some chaos in the commercial markets due to decreased ...
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How is the choice of banknote denominations made?
I'm not sure which SE network this question belongs to, but this seems to be the most appropriate one.
What determines the choice of banknote denominations?
Obviously, the first factor is the ...
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A country with dual payment system
Is there any country with dual domestic payment system?
For instance, in the USA there are CHIPS or Fedwire both help wire transfer of USD within the USA. They give services to international ...
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What is the impact of a technology to produce gold at low cost?
Let's say in a few decades we can find a new technology to produce gold at low cost which will cause the price of gold to be as low as other metals.
My question is that how would this have an impact ...
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Currency conversion and Purchase Power Data
Where can I find multipliers to convert a certain amount in a currency, say USD of 1960 to say present EUR taking account of purchase power parity ?
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How does a country increases or decreases it currency value (exchange rate) against other nations currency?
I want to know how a country, Mexico for instance, keeps the exchange rate higher or lower against other nations currency, USD, EUR, JPY. How does the value of a nation currency is valued against ...
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Which foreign currency has had the least amount of inflation over the last 50 years?
I found this table that lists currency exchange rates relative to the US dollar. https://fx.sauder.ubc.ca/etc/USDpages.pdf
I noticed some currencies have increased in value relative to the dollar and ...
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Should we get rid of the Penny?
Jeff Gore has suggested scrapping the 1 cent coins a few years ago. Why doesn't the US cancel the pennies? Is it that terrible to the economics to keep the copper coin?
As mentioned in the comments, ...
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What is the difference in economy between country that uses national currency only and country that uses not only national currency?
What is the difference in economy between country that uses national currency only and country that uses not only national currency (for example, national currency + dollar)?
Thanks.
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Determine the value of this hypothetical token
Suppose there is a token, an issuer of the token, and a reclaimer of the token. Every year at the beginning of the year the issuer creates and sells at auction 10 tokens. At the end of each year the ...
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Do borrowing costs go down as a currency depreciates?
I was watching a video (https://youtu.be/2CVOfzuqoY4) and got very confused by the following sentence at 1:18:
"Usually when an established currency depreciates in value, borrowing costs in that ...
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Does the US record tax receipts as cash on its balance sheet?
The currency in my wallet has the words “federal reserve note” on it. To me that implies that what I call money is actually a liability of the government. So when I pay taxes, isn’t that act actually ...
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Meaning of Profit
As I understand it, economics is the study of trading goods or services that are limited in capacity. If two people have something the other wants, like one person has water and the other food, they ...
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Convert FAO's international dollar to current dollar
Related to Difference between the International Dollar and PPP.
I am working with FAO production matrix, and it reports production in different units:
constant 2014-2016 thousand I\$
current thousand ...
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How Demand of a product affects the currency
Question : Iron ore is Australia's largest export. Suppose that there was an unexpected increase in demand for Australia's iron ore exports globally. Explain what this would do to Australian Dollar ...
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Options, Futures and other derivatives, book by Hull, confusion of currencies
I have a small technical problem with a book by Hull:
on the page 7, the first line, in the 11th edition of his book
Options, Futures and Other Derivatives (please see the snippet below) he writes
&...
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Perception of value between different currencies
So let's say I am going to sell a game and I'm trying to come up with a fair price.
The thing is, I am from Brazil and I'm selling in an online platform where most products are priced in dollars.
The ...
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Which is most accepted - USD100 or USD 100?
With or without space after currency code? I'm seeing different versions. Here it says USD 100 but here is USD100.
Which is the most accepted term?
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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?
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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 ...
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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 ...
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