New answers tagged currency
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Gold backed money had one huge advantage: it prevented trade imbalances and indirectly that helped regulate inflation and the economy. This worked by governments settling their trade deficits in gold, which meant an inflow or outflow of base gold. When this happened the banks had to either reign in or could relax the amount of currency in circulation to ...
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Yes it is. Lets first unpack some myths about about gold standard or commodity money in general.
They dont necessary prevent inflation. Spain managed to have under gold standard a very large inflation compared to other European nations (Ferguson, 2008), and this happened even without debasement.
Furthermore as you yourself mention debasement can occur as ...
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I am not sure I fully understand the question but the relationship between government expenditure and exchange rate is an important one. In other words, the key question in current policy and academic debates is What are the effects of fiscal policy on aggregate economic activity in a globalised world?
The central challenge in this debate is how to identify ...
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Nothing stops the stock exchange from denominating equities in different currencies and settling trades in different currencies.
Real-life example
The Singapore Exchange lists equities denominated in different currencies, including Singapore dollars (SGD), US dollars (USD), Hong Kong dollars (HKD), Renminbi (CNY), Japanese Yen (JPY), Euros (EUR), ...
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Well first of all I don't know why someone is going around downvoting legitimate economics questions and answers to the point everything recent on this site is negative. Naturally in the Covid19 crisis people are starting to take an interest in the economy, so we're getting questions that don't quite fit the mould, just as we did during the 2007/8 financial ...
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It depends on the laws of the state.
The key is the degree to which the sovereign domain protects the individual's right to private property. Most jurisdictions consider money to be property. That's why the right to ownership of private property is so key to the functioning of a free market economy. Without the right to own private property, as exists in ...
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It is a central bank issue.The dollar is a currency widely used around the world. It is so widely held that if the U.S would try and "Devalue its currency" to gain an economic advantage it would be nil effect because it would also bring down its own economy. China is much different in that it is a closed enough society that it can tell you what you have to ...
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Currencies and currency pairs are sometimes classified as Major, Minor, or Exotic, depending on how heavily traded they are (Major most heavily traded, Exotic least).
Top 50 recent answers are included
