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Foreign exchange doesn't work like that. If you have a small economy, and you want to boost local production, you intentionally want to print more of the local
by solatic 5y ago
Foreign exchange doesn't work like that.
If you have a small economy, and you want to boost local production, you intentionally want to print more of the local currency, have higher inflation, and thus make your currency cheaper compared to foreign currency. This makes your exports cheaper for other countries to buy, thus boosting demand and exports, making the country wealthier.
Literally the biggest economic problem the US had with China is that China kept its currency devalued for so long, thus making Chinese products cheaper for export markets, specifically for China to overcome the effects of Japanese and Western imperialism and build a large, developed domestic market. And they succeeded.
- 5822130027 5y ago