New answers tagged currency
1
I do not think this answer is definitive, but want to point out that there are two very different regimes: pegged or floating currencies.
For a pegged currency, the central bank (or similar body) is attempting to keep the currency value pegged to an external currency or gold. (I am assuming this is a traditional peg, and not a currency board.) A current ...
0
You wrote something like if money were at least partially made of precious metals, then people would "own real value instead of worthless paper"
Whatever value money made of precious metals is worth, or not worth, I guarantee you that paper money is even more valuable.
I am going to offer you a highly unrealistic, contrived, hypothetical scenario....
-1
This r/explainlikeimfive comment by BitOBear answers your question. I edited punctuation and grammar.
Both Gold and Sliver have some common qualities. They physically exist. They can be verified to be what they are, so they are virtually impossible to counterfeit. (The original "touch stone" as a means of determining gold's validity is a huge ...
2
It means you can make money trading a pair of currencies if both lose value compared to a standard. Likewise you can make money trading a pair of currencies when both increase in value compared to a standard. You mostly care about the change of a currency's value relative to another.
If you think USD will decrease in value 10% versus gold and you think EUR ...
0
The bond market is a market, albeit following the lead of the central bank at the short end.
The currency market is a market.
The simplest and crudest version of the Efficient Markets hypothesis is that it is difficult to “beat a market” using a simple rule. The argument is that if such a simple rule exists, everyone would do it, causing prices to shift. (...
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