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Weak currency = it becomes cheaper for other countries to purchase from you. It becomes more expensive for you to purchase from other countries. Strong currenc
by slecodri 11y ago
Weak 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"