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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Does comparing currency expansion vs lifetime income directly tell us about wealth distribution?
For example, let's say the M2 currency expansion rate is stable at 5.5% per year (there's 5.5% more USD in circulation)
Now consider the income after taxes of an average someone, from all sources, ...
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Minimal reserve and the Eurozone
The next expected member of the Eurozone is Bulgaria, which is supposed to join on January 1. 2026. Currently, the Bulgarian lev has a fixed exchange rate with the euro. The price levels in Bulgaria ...
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How do abundant oil reserves in Kuwait make KWD currency so strong?
I read that KWD currency is strongest currency in a world because Kuwait has abundant oil reserves.
But I can't understand how abundant oil reserves influence on KWD currency.
How do abundant oil ...
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What is the estimated ratio of "real" money to "virtual" money in the US?
A bunch of people give \$1million to the bank to hold for them. The bank knows those people won't all ask for that money all at once, and so loans out 90% of that cash to other people. Now there's a ...
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Do economists interpolate currency exchange rate data?
I am wondering if in Economics, economists sometimes interpolate currency exchange rates.
For example, using R, I tried to get historical data on Canada-US dollar exchange rates.
Here is the R code:
<...
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Convergence between GDP(PPP) and GDP (Market exchange)
Economic theory predicts that as countries grow, their currency should appreciate. In other words, their GDP at market exchange rates should converge with cost-of-living-adjusted GDP (PPP). To measure ...
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Is there currency neither undervalued nor overvalued?
Is there currency neither undervalued nor overvalued?
I assume there is such currency in country with fixed exchange-rate regime.
Am I right?
Thanks.
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Why if Saudi Arabia will sell off European debt holdings then euro will be depreciated?
I read news about Saudi Arabia and I have a question.
How to explain that if Saudi Arabia will sell off European debt holdings (+Euro bonds) then euro will be depreciated?
My attempts to explain don't ...
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How redenomination leads to strengthening of national currency?
I read that redenomination leads to strengthening of national currency but I didn't find more details.
How is it possible?
Thanks.
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Is cause of undervalued currency the low cost of labor force or vice versa?
I read in some source that cause of undervalued currency is low cost of labor force.
In another source I read that low cost of labor force is conclusion of undervalued currency.
What case is true and ...
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Is this logical contradiction in explanation of Big Mac Index calculation or am I wrong?
Let we have currency A and currency B.
In the first country 1A=50B and Big Mac costs 2A. In the second country Big Mac costs 200B.
Old exchange rate: 1A=50B
New exchange rate must be: 200B/2A=100(B/A)....
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Where can I learn about what exactly effects currency values?
So I will admit I am very ignorant of economics, but I am interested in how current events effect currency value.
For example, Saudi Arabia announces it will not renew the petrodollar deal with the US ...
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How is it possible for a country to have both deflation and a weak currency?
As of early 2024, China has lower inflation than America, if not deflation. But the Chinese yuan is also weak right now, requiring Chinese central bank intervention in favor of the yuan to maintain ...
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If high interest rates cause strong currencies what do Argentina and Zimbabwe have currency collapse?
These two countries like Argentina have massive interest rate, over 50%, yet nobody can claim the argentinian peso is stronger. In fact its like 1000 to the dollar and was much stronger before. So do ...
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What defines the face value of a new currency?
When a new currency is issued, be it backed or not, its face value, i.e. the value of a single unit of the currency, has to be defined somehow.
For example, when the Euro was introduced in 1999, it ...
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