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The problem is always this: what can I buy with the money I have? If all major currencies (including home currency) float down, then I don't lose very much. How
by jan_g 14y ago
The problem is always this: what can I buy with the money I have? If all major currencies (including home currency) float down, then I don't lose very much. However, if my home currency loses 10% or more per month relative to other currencies, then I would very much like to have access to foreign currency. This was true 30 years ago in my country and this is probably true in Argentina today.
- kokey 14y agoThe problem with them all moving down is that it affects the value of your savings. At the same time the fact that they are all moving down is supposed to make investing them in things that creates or retains value more attractive.
- ef4 14y ago"If all major currencies (including home currency) float down, then I don't lose very much." That's not true -- they're all floating down relative to actual goods and services. Coordinated devaluation prevents massive capital flight from country to country, but only by making things suck equally everywhere.
- jan_g 14y agoYes, I understand that. But the process is slow. Hyperinflation in some countries was/is much, much worse than regular inflation in developed countries.