New answers tagged currency
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Why does this example illustrating the effect of growth on exchange rates not work?
Why does economic growth in this example not increase the value of my currency? It seems very probable that the example is oversimplified, in which case I'm looking for a simple example that ...
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Why does this example illustrating the effect of growth on exchange rates not work?
As has been pointed out, economic growth does not make an exchange rate more valuable. Ultimately an exchange rate is just a price, and in economics this is conceptually different from the volume of ...
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Why does this example illustrating the effect of growth on exchange rates not work?
It has been made clear in the comments that "economic growth leads to one's currency becoming more valuable" this means the exchange rate improves.
While one could argue that ceteris paribus ...
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What downside is there to making the USD the national currency for your country?
The previous answer is absolutely correct, but if I may put it in slightly more ELI5-ish terms, the main problem for countries trying to make the USD their national currency is ensuring that they ...
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