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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Is it valid to compare cryptocurrencies by using their smallest divisible unit?
I'd like to compare the relative value (in USD) of three cryptocurrencies: Bitcoin, Ethereum, and IOTA. (See spreadsheet below.) Specifically, I'm comparing the price of each currency's smallest unit ...
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Inflation-adjusted units of account
In Chile, most of prices are measured in the local currency, the peso (currency code CLP). However, there are two other units of account. These are the UF and the UTM. These keep track of the real ...
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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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Gresham's Law applied to wampum and gold/silver coins in the 1600s
So I was reading an article by Nick Szabo called "Shelling Out"
And in his introduction paragraph he explains how American Indians use bones and shells as a currency called "wampum".
This currency ...
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Where can I find historical (very old) USD printing data?
Where can I find historical/very old USD printing data? Charts can be useful, but I want numbers. It is for a project.
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Creating a currency
I have been given an assignment for creating my own currency in economics. I am curious what one should know when doing this. It doesn't have to be too elaborate but I would like some advice. I know ...
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Econometrics for currency valuation?
Different assets have different motivations and components for price determination. For example, an equity stock price might be considered to be include the value of underlying company, its potential ...
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How would unlimited free energy affect the global market? [closed]
What will the effect on today's global market if a new source of free unlimited energy was to be discovered?
How badly will it disrupt today's global market and how badly will it affect our currency?
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Why is Japanese Currency tied to gold?
I was listening to a Bloomberg market update, and the journalist mentioned that the Japanese currency was down as Gold rose.
I've heard that investors park their money in Yen. Is the reason the Yen ...
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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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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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Confused about relation of inflation to a currency's depreciation?
I'm a complete newbie to this foreign exchange stuff and was reading about the impact a country's price levels have on exchange rates.
So from what I understand, the general idea is that inflation ...
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Are there plausible scenarios for the U.S. dollar to fall out of use as the world's reserve currency?
The U.S. has maintained an overall trade deficit for decades, essentially exporting money. For many countries this fund of 'ex-patriated' dollars has been a big tool of trade. Everyone accepts dollars....
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what in real terms causes one nations currency to be more valuable than another?
I would like to understand in atomic terms what makes the value of one nation's currency change with regard to another. Read that, without citing complex terminology but in basic terms.
Obviously, ...
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Can the major indice of an exporting nation decrease at the same time the currency devalues?
In the UK, the FTSE100 is achieving record highs at the same time the currency (GBP) is depreciating rapidly.
The media often correlate the two events by reporting that since the indice is made of ...
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What do the numbers in the ISO 4217 currency codes mean?
The International Organization for Standards (ISO) has a ISO 4217, which delineates currency codes, country codes, etc. for, well, international currency.
Alongside this, each country is given a ...
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Forecasting future currency exposures
I have a data set (about 60 observations for each variable) for monthly operating income for a Japanese company denoted in EUR, USD, and JPY, and their respective currencies. I believe there is linear ...
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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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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'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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Does a strong dollar achieve the same tightening effect on the economy as rising interest rates?
Rising interest rates means the cost of borrowing USD goes up. A stronger USD means USD becomes more expensive. Wouldn't that naturally follows that the cost of borrowing USD goes up since each dollar ...
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Value of the ruble in year 1825
Would anyone know how to find out the value of the Russian ruble in the year 1825, in today's (2016) US dollars?
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Do the stock performances of various companies have a measurable correlation with exchange rate?
For example if the values of big companies in a country decrease, will the value of that country's currency measurably decrease?
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Conversion of GDP PPP International \$ 2005 into GDP PPP International \$ 2011
Essentially I have two different datasets that I'm trying to consolidate. One set of data comes from the World Bank Databank, and is a set of historical GDP PPP values for all countries expressed in ...
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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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Given fractional banking and the multiplier effect, for every dollar in circulation, how many dollars in spendable money exist?
The fractional banking system, in a nutshell, allows banks to invest the money deposited in them, and then for whoever ends up with that invested money to deposit the money back into the bank, which ...
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How do currency traders resolve imbalances in the demand for different currencies?
Countries trade different amounts of goods that are inherently imbalanced. How do currency traders resolve these imbalances in the demand for different currencies? For example....
Imagine we have two ...
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What effect would destroying large amounts of physical currency have on government finances
India has recently recalled high denomination notes and asked people to deposit the physical currency in old notes in their bank accounts. People who have unaccounted wealth are resorting to ...
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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 will the value of the pound affect the British economy?
Given the recent massive decrease in the value of the pound, does this not equally devalue the British economy by a similar amount? Why does that not lead to an immediate large crash in Britain as ...
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Why switch from Gold to Fiat
If I'm not mistaken, gold was used in early days of USA.
Why did we switch to fiat, i.e dollar bills. Originally they were backed by gold, so why not keep gold?
I'm just trying to understand basics ...
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What is a bilateral currency swap line? [closed]
Please explain in simple terms. How exactly does it function?
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How does Egypt prevent people from arbitraging their currency?
Apparently Egypt uses a fixed exchange rate so there is a substantial difference between the government rate for the Egyptian pound and the price on the street. What prevents someone from just buying ...
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Gold coins as currency?
My question is about gold standard. But not the version I always see mentioned (trading bills for gold at a set price). I mean having gold coins in circulation.
For example, new currency consists ...
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Uncovered Interest Parity question
I am trying to understand the fact that, given that the uncovered interest parity holds, a rise in dollar interest rates will cause the dollar to appreciate. Is this a good intuition?
Uncovered ...
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Currency triplets - arbitrage opportunity?
I have three currency pairs - USDEUR - 0.88, USDINR - 67.13 and EURINR - 75.88 , so simple math tells me that EURINR should be USDINR/USDEUR = 76.28 ...this is a fairly significant deviation from an ...
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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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The Currency Value
On what basis, The value of any currency changes:
Does it depend on re-paying the loans.
Or it depends on trade & exporting.
(e.g. The "Dollar" equals 13 Egyptian pounds... What's the reason? Is ...
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because bitcoins do not generate earnings, then (it is a ponzi scheme)?
What does the author mean with:
Since Bitcoins do not generate any actual earnings, they must
appreciate in value to ensure that people are willing to hold them.
Why must they appreciate in ...
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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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In a trade imbalance does the importing country's currency become more valuable?
Suppose that country A buys freely from country B, but B uses steep tarriffs to block its citizens from buying from A. In that case country A's currency will pile up in B.
Other things being equal, ...
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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 ...
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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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How will the Brexit affect the Euro and the Pound?
The question is the title: How will the brexit affect the euro and the pound?
It looks like GBP is facing a tough situation. It is at its lowest value since 1985. Has GBP dropped permanently(or for a ...
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What is the list of countries where the central bank prints money?
Is there a list of the countries where the central bank is creating money, today ?
How much ? We know for:
EUR: Euro countries (since ECB QEs) (and euro-bound countries as DKK ?)
YEN: Japan (BOJ '...
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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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Is there a good way of assessing an estimated absolute value of a currency?
If we want to figure out the strength of a currency relative to another currency, we look at the exchange rate between the two. However, I'm wondering what is the most accurate way of assessing the ...
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Who gets newly printed currency?
The central bank of a country is responsible of the printing of new currency notes and coins/ money to the economy of a country. My question is how they introduce this new money into the economy in a '...
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Russian ruble drop in value due to low oil prices
http://www.americanactionforum.org/research/impact-falling-oil-prices-russian-financing/
Based on the above article, the author states that "For budgeting, this favors the oil exporter, because a ...
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