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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72 views

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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54 views

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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63 views

Isn't the concept of “Currency Manipulation” really much ado about nothing? [closed]

(edit this bracket out: i'm sorry for being unclear in my question, it was too mild or undirected earlier, i hope the following is better; thanks) You keep hearing politicians and sometimes the biz ...
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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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Why 1000 Rs and 500 Rs not accepted in Bhutan and Nepal? [closed]

In Nepal and Bhutan, Indian rupee is accepted but 500 Rs. And 1000 Rs note is not accepted. Cam there be any specific reason behind this?
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Baht drops and Gas Prices too? [closed]

Why would the powers to be drop the price of petro while their currency's value declines? The Thai Baht has been dropping significantly in value the past few weeks at the same time the price per ...
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23 views

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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178 views

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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Who owns money?

Bishop Nicole Oresme (1320-1382), in the first monetary treatise, wrote: CHAPTER VI: Who owns the Money? (Cuius sit ipsa moneta?) Although it is the duty of the prince to put his stamp on the money ...
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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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156 views

Why are different currencies able to purchase different amounts?

I am baffled by this for so many years! Kindly, explain this in layman's terms (i.e. to a guy who never studied economics at a university): I can purchase one dozen of eggs for €3.52 in Frankfurt, ...
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Does only “supply/demand” rule justify different prices for a digital good?

Provided the network infrastructure costs the same for the seller (if things going on with net neutrality weren't to effect that), certainly considering the fact that an average citizen of a given "...
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4answers
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What is the difference between microeconomics money and macroeconomics money?

In microeconomics, \$USD are a store of value. I can sell a candy bar for \$1, and I can hang onto that \$1 for a year and then buy the same candy bar for that same \$1. If I print \$1 (and get away ...
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52 views

Can a currency with constraints on the amount a person can posses boost the economy?

So there was the following proposition: Create a currency with the following contraints: Each person may only own x amount of this currency. Gaining more of this currency is not allowed. Using a ...
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1answer
72 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 ...
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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 ...
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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 ...
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63 views

Why did the pound sterling lose its reserve status to USD?

Why did the pound sterling lose it reserve status to USD? Was this due to some agreement during the Bretton Woods negotiations?
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What are the benefits of reducing zeroes from currency (eg: Iran)?

Recently, Iran decided to replace its old currency to a new one. Quoted from Wikipedia A proposal has been agreed to by the Iranian parliament to drop four zeros, by replacing the rial with a new ...
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24 views

What's a “relative pair trade” for currencies?

Is the U.S. Dollar About to Crash? – Pairagraph The way I see currencies is that they are a relative pair trade. Against gold, with its stability characteristics, I don't like the US dollar. But ...
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92 views

How exactly does QE affect the value of the USD?

A lot of people on the Internet refer to quantitative easing (QE) as a form of "legal money printing" when it is actually not. As such, many of these folks would thus erroneously say that QE leads to ...
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29 views

Whats the meaning of this parameter?

I was looking the currency exchange board, and I saw the value of "exotic" for the parameter Group, what is the meaning of this value? I dont know if this is a local figure or is used in ...
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40 views

How is an spontaneous currency changing phenomenon called?

On November 2019 I went back to Venezuela, and the biggest shock for me was that people started trading goods using US Dollars. This isn't "legal", but it has become so common that I hardly ever had ...
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Currency Devaluation - As a Means of Paying Off Debt

From https://www.sapling.com/8117368/debt-handled-currency-devaluation: Currency devaluation will not only affect consumer debts, but it will affect how a country pays back its national debt. If a ...
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If a currency is pegged to another currency which collapses, what happens? [closed]

If a currency X is pegged to another currency Y which collapses, what happens to currency X?
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106 views

Smart contracts in Dollars

In last years I have read a lot about "Smart contracts". But I cannot understand why we need bitcoin for this? The old-fashioned US Dollar are not used in Smart Contracts?
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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.
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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 ...
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32 views

Why does Bimetallism require international cooperation to have a chance at succeeding?

I was reading the Britannica encylopedia's article about Bimetallism and under the arguments put forth against it, they cite that bimetallism doesn't work without international cooperation. Could ...
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Why would China's FX reserves stay flat as the Fed ramps up its balance sheet?

As seen in the chart, China's FX reserves have remained flat lately despite the massive balance sheet expansion of the Fed. Though out of the temporal domain of this chart, if it were extended back to ...
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1answer
46 views

Relationship between government expenditure and exchange rate?

I've read an increase in government expenditure can lead to increase the chances of currency crisis but shouldn't it lead to the opposite? Fiscal deficit ----> Govt will undertake borrowings --->...
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29 views

What are some currencies that are not pegged and fixed?

Are there any currencies that are not pegged to the dollar or euro and are purely fixed exchange rates?
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50 views

What strategies can the president employ to deflate the dollar

United States president Donald Trump has publicly declared a desire to deflate the value of the dollar. I have read in news reports that he has asked aids to find ways to decrease the dollar's ...
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Purchasing power of currency abroad

Say you have two countries A and B. Suppose we have a situation where country A's currency can purchase much more in country B than the other way round. What causes this phenomenen? Is it possible ...
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456 views

Why does capital flight cause inflation?

Context: I was watching a video about Venezuela, and, it all started with capital flight due to poor confidence in the government. The government tried to stop it, and in the process it created a ...
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1answer
57 views

Paying Filipino workers in USD. What should the inflation rate be?

I'm not sure where to ask and, since this is not Personal Finance, I'm gonna ask it here. Here's my situation: for the past 2 years, I hired and trained a team of Filipino workers. They are paid in ...
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1answer
207 views

Where do Montenegro and Kosovo get their euros from?

Both Montenegro and Kosovo have unilaterally (?) decided to use euros as their official currencies. I think that most of their capital exists only as records in bank registers, so there is not much ...
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Can we get rid of banknotes and coins?

this is more a theoretical question, nowadays with Internet, Debit/Credit cards and Cryptocurrencies, why should we keep printing/making more physical money? granted not everybody has access to ...
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37 views

Does the currency in circulation equal the annual production of goods and services?

I have learned that in a country currency is printed equal to production of goods and services in a year. I want to know if in a year a country produces rice of 10000 rs. The government will print ...
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36 views

Normalise historic values given in different currencies

I have historic monetary values given in different currencies and stemming from different points in time. I want to be able to compare them, and for that all must be given in the same currency, and ...
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70 views

Considering how USD enters the market, is the USD actually unbacked? Could the USD represent a unit of a “fund” of securities held by the Fed?

From my understanding, all new money enters the market either 1) by the Fed lending it to banks, so the Fed essentially owns bonds in the exchange, or, 2) The Fed purchasing other financial assets. So ...
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844 views

What's the economic effect of a country reducing its imports?

If a country enacts a program that successfully reduces its imports, eg: A 'buy local' advertising campaign A program of training mechanics to maintain older cars, rather than buying new imports An ...
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What are the constituents of a country's inflation

If we assume a country where only demand pull inflation holds, that is no imports cost inflation or currency fluctuations are a risk, then we can assume that inflation is determined by: Consumer ...
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32 views

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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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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113 views

What is a bilateral currency swap line? [closed]

Please explain in simple terms. How exactly does it function?
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1answer
52 views

How to make deliberate devaluation or depreciation of a currency?

It is said in Wikipedia, that devaluation can be done as monetary policy act. But HOW this can be done if there is no fixed rate? What are actual tools Central Bank can use? One thing I can imagine ...
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56 views

Foreign Currencies Exchange Data [closed]

I need data for forex rates because I'm working on a project to predict the rise and fall of the rates. Where can I find such data?
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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 ...