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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Could eliminating all taxes and only creating new money theoretically work?
Imagine you had the opportunity to found a new country from scratch (in 2020).
Value exchange would be digital, where only the state can create new currency units.
Instead of relying on income tax ...
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Why do different countries have different currency?
Why do different countries have different currency?
I have this question because I want to know why to divide it? If it's not divided then we can easily use the money anywhere and we won't need to ...
user14198
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Can inflation occur in a positive-sum game currency system such as the Stack Exchange reputation system?
As most active users of this site know, the way the reputation system works is that everyone starts out with 1 reputation and a user can earn more reputation by asking good questions and writing ...
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I lost $100 in the laundry, who won?
I lost a 100 dollars bill in the laundry (it was destroyed).
I clearly lost 100 dollars.
Where are they now? Who won 100 dollars?
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Should Finland leave the eurozone?
Finland's economic recovery from the shock of the global financial crisis of 2007–2008 has been very weak. The country has been in recession for the past three years, with GDP expected to expand by ...
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When a country adopts the Euro, what happens to its debt?
When a country, say Greece, adopted the Euro as its currency, what happened to the debt that was based on the Drachma? Was it converted into Euros?
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In today's money, what was the value of a 1492 Spanish maravedí?
Satava (2007) estimates that the costs of Columbus's 1492 voyage was 1,765,734 maravedís.
In today's money, what was the value of a 1492 Spanish maravedí?
user23102
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What benefits does Bitcoin (i.e. cryptocurrency) offer?
I really, really like moderate inflation. I live in Sweden where the interest rates just went negative because we are on the brink of deflation, and the rate of inflation we have now is far too low. ...
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Real Exchange Rate vs PPP rate
I'm having troubles to understand the difference between the Real Exchange Rate and the PPP rate.
I know the first one is calculated using a basket of goods and services so that the non-tradeable ...
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How interest rate affects currency
I am quite new to economics. I was reading about changes in interest rates and its effect on currency value.
The fact is as interest rates increases, the currency value also increases and vice versa....
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How does a country devalue its currency?
I recently read an article in the New York Times that talked about China devaluing its currency (which I believe is held to a peg against the US Dollar). My question is: specifically what tools does a ...
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How could the Euro zone be broken up in an ordered way?
Let’s assume that the members of Euro zone all agreed that it would end in 18 months time with each country getting its own currency.
What process could be put in place to allow this to happen ...
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Why does any treasury / central bank hold gold?
I know the US treasury is slowly selling its gold reserves, but what is the actual mission and purpose when it comes to the holdings?
What is the reasoning behind the slow rate of liquidation? I have ...
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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 ...
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What are the known / alleged problems against using energy as currency?
What are the known (and alleged) problems of using Joules (i.e. a measure of energy/work) as a currency? I tried to find such idea in Google (searched terms like "technocracy", since someone told me ...
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What would be the effects of an expiration date on currency?
Let's say we introduce a monetary system where each piece of money is printed with an expiration date - a year, perhaps.
I'm imagining something rather different from inflation (although I do not ...
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Wouldn't abolition of cash give rise to a substitute currency?
Some countries (e.g. Sweden and Denmark) plan to abolish physical cash in the future and restrict the use of cash to electronical deposits. One of the reasons for this is to prevent hoarding / boost ...
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How does a bank convert one currency to another?
Say for example I sell ZAR and buy USD. What happens behind the scenes so that the local ZAR bank is able to deposit USD into my account?
Does the bank require some sort of USD cash reserve?
How do ...
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Why is the rouble collapsing?
What are the reasons why the rouble (RUB) is collapsing? Which one is the main one?
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What would happen if the world switched to a single currency?
What would happen if all countries suddenly stopped using local currencies and adopted a global currency (like the Euro, but for everyone)?
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What effect would removing the lowest denomination currency have?
Here in New Zealand our lowest denomination coin is 10c after the 5c was removed about 10 years ago. I think generally the public is pretty happy about the move.
It's quite a common argument to ...
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Financial Smart Contract on Ethereum: can an Ether Futures contract be priced in Ether?
BACKGROUND
This is more in the wheel-house of economics than programming, but after a few different titles, I thought it best not to skirt around the root of my question OR create a oddly phrased USD ...
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Can someone explain why sterling-dollar parity is bad?
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 ...
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Why do currencies cover orders of magnitude?
Using 1 USD as a reference, most currencies are within an order of 5 away from the USD: that is, one unit of most currencies is worth between 0.2 USD and 5 USD. (Source.) In fact, most European ...
user01101001
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What are the differences between the older gold standard and the current fiat money standard?
My current limited understanding is that the gold standard was a system in which there was a fixed currency amount per unit of gold. For example, 1 ounce of gold might be 100 USD. Another country like ...
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What is the advantage and disadvantage to have a high value of USD for USA?
What is the advantage and disadvantage to have a high value of USD for USA?
China and Japan always want to keep their currency low as oppose to USA.
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Calculating nominal GDP
I would like to understand one detail of how nominal GDP of a country in a given year is calculated. It seems to me that the GDP in each country is first calculated in the national currency and then ...
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How can the Swiss exchange rate be very biased in a free market?
In 2002, when Germany, France, Italy and Austria adopted the Euro currency, the exchange rate with Switzerland was 1.60 CHF (Swiss Franc) = 1€ (Euro).
The prices and salaries in Switzerland were ...
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What may have caused these blips in the value of Euro vs. US dollar
I was looking at the USD/EUR exchange rates a few minutes ago (Saturday evening, Eastern Time Zone here in USA) at xe.com and noticed some sharp blips on it from earlier today.
The graph looked as ...
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Why is the Euro a bad idea compared to other currencies?
Many economists, including Nobel laureates Paul Krugman and Joseph Stiglitz, have said that the Euro was a bad idea from the beginning and is a major reason for all the current economic problems. My ...
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Why could interest rates go up if Brexit happens?
I was reading this article, George Osborne says Brexit would drive up mortgage rates:
George Osborne has issued a stark warning that mortgage rates will
rise if Britain leaves the European Union.
...
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How does US (its economy, banks, industry) profit from dollar being the "standard currency"?
How does US (its economy, banks, industry, "finance industry") profit from dollar being the "standard currency"? I am not seeking "ideological" explanations, but explanations of the mechanisms ...
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Fractional reserve banking and the value of someone else's currency
Suppose there are two countries: $A$ and $B$. $A$ is a large, stable, democratic country with its own currency, the dollar. $B$ does not have its own currency. All prices and financial transactions in ...
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Are cryptocurrencies a ponzi scheme or a bubble?
Several users in this forum have addressed bitcoin and other cryptocurrencies as ponzi schemes. Bitcoins have several uses which could legitimate its value as a currency, but also have received ...
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Australian Dollar Devaluation
I am a layman in economics. I am curious about the current devaluation of Australian Dollar in comparison with the US Dollar. Could someone please explain, in simplest words possible:
What causes ...
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Why do Higher Interest Rates attract Foreign Investors?
I am reading the following Article at Investopedia which states
Generally, higher interest rates increase the value of a given
country's currency. The higher interest rates that can be earned ...
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Does Dogecoin or Bitcoin have a more appropriate rate of monetary inflation?
The supply of new Bitcoins and Dogecoins is depicted in the graph below.
The Bitcoin inflation rate is currently higher than the Dogecoin rate, but it reduces sharply to a rate close to zero. It ...
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Why should Greece destroy their cash euros?
Leading economists in my country (Sweden) recommend and predict that (in the case of default) the Greek government will destroy all the euro bills in the country. Making holes in them and stamp them ...
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Why does the Dutch disease cause the value of the currency to increase?
I was just reading about the Dutch Disease and it causes that the value of a country's currency increases when said country suddenly finds natural sources of oil. Why is that?
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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 ...
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Unlimited supply of national currency?
I was reading this article about Denmark central bank defending its currency peg:
http://www.bloomberg.com/news/2015-01-22/denmark-cuts-key-deposit-rate-to-minus-0-35-to-drive-down-krone.html
In it ...
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How does raising the Russian interest rate defend the Ruble from devaluation?
Raising interest rates to minimize currency devaluation is being adopted in countries like Brazil and Russia:
Brazilian interest rate
Russian interest rate
How does raising the interest rate ...
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Why was Swiss National Bank in red by keeping fix exchange rate to Euro?
When I read news about the action of Swiss National bank of not keeping fix ration to Euro any more, I read in all articles, that it was too expensive for Swiss National Bank to keep the fixed ...
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What is the relationship between inflation and imports/exports?
According to the aggregate demand curve, when the price level is higher, the real GDP demanded is lower. One of the explanations given is a consequence of the Mundell-Fleming model:
"As the price ...
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Book for Bretton Woods conferences and gold standard
I am looking for a good book to explain to me why the gold standard existed and why in the Bretton Woods conferences, some countries choose to abandon it. An explanation of the general scenario in a ...
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The Insane Sultan of Slickcrudistan: Calculating Currency Equilibrium
I work for a start-up that has encountered an economics problem no one on our team has been able to crack.
A story form and a general form of the problem are below. I believe they are equivalent, but ...
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Why is JPY considered a "safe currency"?
When the economic prospect around the world feels getting worse and/or getting higher uncertainty, usually the value of JPY is getting higher, because investors are said to start to buy JPY to shelter ...
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How can a country ensure its national currency is used by its citizens?
I am wondering how countries are able to force everyone to use its own currency, instead of some external currency (like the U.S. dollar or Bitcoin or cookies or something else not under government ...
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What made The Wörgl Experiment successful?
Background:
In 1932, in the midst of the Great Depression, the small town of Wörgl in Austria successfully experimented with its own local currency (in the form of a stamp scrip) ... They not only ...
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How can the exchange rate be virtually constant with major inflation rate difference and a widening trade deficit?
I have recently had a discussion with a colleague about what seems to be a rather strange macroeconomic aspect in Romania (which has RON currency):
EUR-RON exchange rate has been virtually a flat ...
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