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That's a fascinating measure. Thanks for sharing that. I didn't even know about that. It would seem that our currency is overvalued then if our true output is
by nickthemagicman 6y ago
That's a fascinating measure. Thanks for sharing that. I didn't even know about that.
It would seem that our currency is overvalued then if our true output is skewed by our currency exchange rates?
How does that reconcile?
- nine_zeros 6y agoBecause the demand for dollars is 7 billion people + entities vs demand for say Chinese yuan is 1.4 billion people + chinese entities only. Basic supply and demand. If demand for US dollar reduces (say all Asian countries band together like EU to form a megacurrency), they will stop keeping too many dollars in reserve and demand will drop, thus currency value will drop and the US will drop in GDP rankings.
- nickthemagicman 6y agoThat's fascinating. Thank you for the info! Have been digging deeper into this.