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The dollar is falling compared to what? Commodity prices?
by afpx 4y ago
The dollar is falling compared to what? Commodity prices?
- gmiller123456 4y agoThere are lots of ways to value the dollar, the Consumer Price Index is probably the most useful.
- kietay 4y agoThey mean purchasing power, e.g. inflation.
- pcmonk 4y agoI think the answer is something like: - the dollar is falling compared to US living expenses (US inflation) - the euro is falling compared to the dollar (exchange rate) - therefore, the euro is falling faster compared to US living expenses - but the euro is not necessarily falling faster compared to EU living expenses (EU inflation) Indeed, EU inflation and US inflation seem to be about the same, which means that the exchange rate change is not because one or the other is experiencing more inflation.