Inflation and Exchange Rates, James Tompkins
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- Опубликовано: 16 июл 2024
- This is the eighth lecture in the "International Finance" series in which my goal is to develop an understanding of how and why relative expected inflation between two countries can serve as a way to forecast the exchange rate. In addition, I discuss inflation policies for countries. As a country, do we prefer high inflation, low inflation, zero inflation, deflation? Why? The purpose of this lecture is to further your understanding of why the dollar and other currencies go up and down in value. As we continue to develop our understanding to this and other international risks, in future lectures we will look at managing this risk and taking advantage of "risk opportunities" that exist out there.
Well explained. Loved the lecture. Thank you for making it available.
Could you please explain... How a nation value their goods where there production cost is different? How they balance their currency...
+The Eagle Rays Hi Eagle Rays. I prefer not to answer questions on RUclips because it robs others of the thought process and I can not be interactive in this forum. In any case, a key ambiguity is that there are different types of "value". For example, if you are talking about market value, no matter what the production cost, it will be what the market will pay for the good. Good luck.
Hello sir
I want to know that why is japan currency yen keeps on strenghening inspite of being deflation country.
As, u said that deflation hinders economic growth
But, u also mentioned that japan is export oriented country
+vini 399 Hi Vivi...I prefer not to answer questions on RUclips because it robs others of the thought process as they "interact" with the videos. What I will say though is for you to look at each of the issues you raised one at a time and decide what impact you would expect it to have on the Yen...then it is for you to decide which combination of factors would dominate to move the Yen.