4 ms·
Currency Wars: Is a Weaker Currency Good or Bad?
- slecodri 11y agoWeak currency = it becomes cheaper for other countries to purchase from you. It becomes more expensive for you to purchase from other countries. Strong currency = you can buy cheaper from the rest of the world, but you're more costly for the rest of the world. A balanced economy is good. The US have a negative current account balance --> the buy more than they sell to the rest of the world. The US$ has to weaken to balance it. Germany is the opposite, so German currency should become stronger because the current account balance is extremely positive. But it can't because Germany shares a currency with other countries. Oh, shit, Greece uses the same currency. Wtf, this shit can't work. 2015: "Oops"
- bko 11y agoA weak currency is good for corporations that focus on exporting and bad for the rest of us, especially in America considering Americans import a lot of their goods. I never did understand the difference between currency manipulation and monetary easing.
- michaelhoney 11y ago"Yes." Non-facetiously, I think a weaker currency for country like mine (Australia) is advantageous – which is probably a good thing given our currency has lost ~30% against the rest of the world in the last two years. Imported goods costing more encourages you not to buy them: much as I love $LATEST_THING, I don't _need_ it.