Why do countries devalue their currencies? - Tell me why
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- Опубликовано: 30 сен 2024
- What is currency devaluation and what does it mean? And why do countries, by their own wish, devalue their currencies? Find out why countries devalue their currency in this short animated video.
How is currency devaluation done?
What is the benefit of currency devaluation?
What is currency devaluation example?
Why would a country devalue its currency?
Is currency devaluation good or bad?
What are the benefits of currency devaluation?
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Even the inception movie didn't confused me like this!😂
oh god my ex loved inception. I have literally no idea what it was about.
True😂😂😂
🤯🤯
😂
Y it's pretty simple
I can solve Advance Trignometry and Difficult Calculus equations but this shit is too complex 😂😂😂
This is not the best way to explain it. Introducing so many new words like Rambi Dalluro bla bla only made things harder to understand and the story harder to follow. isn't there a simpler way to explain that concept ?
Bla bla
seriously....just heard blah blah
You are so right! Yikes this is really confusing!
no its easier
Okay, lemme explain it to you guys 🙏🏼
Here, let's take an example of the US and India
Let's assume 1 US dollar is equal to 10 Indian Rupees($1 = Rs10)
Let's say India is facing two problems here:-
1) Imports are high and Exports are low which means there is a "Trade Deficit"
:- Trade Deficit = Exports - Imports
2) Exports are low
Now, these two problems, how can India solve this?
India can devalue its currency, how come? Lemme show you-
Remember $1 = Rs10
Now let's say India devalued its currency and now $1 = Rs20
So you must be thinking how come India solved its problems stated above?
Look if the US people are buying something which is being imported from India and now for $1 they will avail Rs20 worth of material, which earlier was Rs10... So this is good for them, now they can buy more Indian products with that $1 which in turn will require the US to import more from India... So ultimately India is exporting more material, which in turn will boost Exports.
Now, the second problem of Trade Deficit.. here you go...
The people who are living in India have to pay Rs20 for a $1 product, now they will buy fewer US products cause they are expensive, which in turn will result in India will import less from the US.
So, Exports are high, Imports are low.... This is what every country want.
I hope you all understood now 🙏🏼
Thank you for reading this long answer
Take care 🙏🏼
Thailand ki currency india se zyada kyu? Uska import export bus hijra prostitute chlate h
Well understood more than this animation
Very helpful
If foreign (indian) products get cheaper for US buyers, you are assuming US buyer will buy more of these indian products.
Is that really true? Just because something gets cheaper does not mean automatically you will want to buy more of it.
@@frankthetank8216 but you understand his point. Right?
Why are you trying to complicate things?
you have this capacity of taking something really beautiful and turning it into really complex crap.
Sibtain Manzoor 🤣🤣😅
LMAAAOOOOOOOOO
With a really hard to understand accent.
@@cryptocrush-823 thats not fair, its not his fault your ears and brain are racist
@@cryptocrush-823 People have different accents across the world. If you cannot understand one's accent, it's not their fault, they may find hard to understand your accent as well.
Thanks for confusing further
Manish Mahanti kia bat ki hey
Lol
😂😂
you should have explained it using the real countries n real currencies. you made it very very confusing by creating fictional planet and currencies.
Usa :Ghabarlaa mala ghabarlaa
Okay, lemme explain it to you guys 🙏🏼
Here, let's take an example of the US and India
Let's assume 1 US dollar is equal to 10 Indian Rupees($1 = Rs10)
Let's say India is facing two problems here:-
1) Imports are high and Exports are low which means there is a "Trade Deficit"
:- Trade Deficit = Exports - Imports
2) Exports are low
Now, these two problems, how can India solve this?
India can devalue its currency, how come? Lemme show you-
Remember $1 = Rs10
Now let's say India devalued its currency and now $1 = Rs20
So you must be thinking how come India solved its problems stated above?
Look if the US people are buying something which is being imported from India and now for $1 they will avail Rs20 worth of material, which earlier was Rs10... So this is good for them, now they can buy more Indian products with that $1 which in turn will require the US to import more from India... So ultimately India is exporting more material, which in turn will boost Exports.
Now, the second problem of Trade Deficit.. here you go...
The people who are living in India have to pay Rs20 for a $1 product, now they will buy fewer US products cause they are expensive, which in turn will result in India will import less from the US.
So, Exports are high, Imports are low.... This is what every country want.
I hope you all understood now 🙏🏼
Thank you for reading this long answer
Take care 🙏🏼
Thanks for making it more complex 👍
I need to do a diploma to understand this Dalluro
I lost my sleep the day i watched it.
Why can't you call the countries and currencies something easier? Like HOI POLLOI , HARA VARADNEH and HUAFGHAG
"Lets make Johnville great again."
I see what you did here
Animation = 10/10
Content = 1/10
Good Animation
Shit Content
Impossible to understand
so FU
Dude, your animation is so freakin good. Don't tell me why- tell me how! How did you learn to animate like that?
Keep up the good work man. Don't stress about your accent. I have a thick American accent when I speak in German, but I just keep going because communication is the most important thing!
I was about to ask the same question: "Tell me how. How did you learn to animate like that" :)
He is indian..his accent is normal
Why can't we fold paper more than 7 times?
Thank you so much..I need to watch other videos for getting out from your concepts now
Good explanation. The names in the example could have been less complex though. Thanks for the video!
The animation is very neatly done however, an explanation using simpler terms rather than Rapi, Rambi would have made the learning more enjoyable. It is quite taxing when you want to comprehend the concept but need to focus more on these confusing terms.. May be for your next video try to keep things Simpler and you will have more LIKES :-)..
As Albert Einstein said:
Everything Should Be Made as Simple as Possible, But Not Simpler
Keep up the good work.
too confusion, you made it more complex
Why are people asking them to calm down about there accent? Their is no prime accent and every accent has same space. This accent is one of many and all are equally represented.
thumbs up if you stopped half way...
I m not sure but what I understood is: Devaluation is like a SALE offer, it may cause loss to the seller but due to this sale offer the seller can attract many customers. Now these customers will buy more things without thinking of any other option and seller profit is huge. In this example the seller is the country which devalues it's currency to export more products and buyers are the other countries like to import.
thanks for helping me understand
You got the spirit of Devaluation,,,,,
From your explanation i further understand that is simply a Discount on a country's currency
भाई मुझे पहले थोड़ा बहुत समझ आ गया था पर इस वीडियो को देखने के बाद, मुझे लगता है की अब मैं जिंदगी मैं devaluation कभी नहीं समझ पाऊंगा 😂😂
Got confused, so many new words.
Instead you could have used actual country and currency.
exactly just bunch of gibberish
You guys need to rename your channel to "Can't Explain Channel"
*Came with some much curiosity to learn.....but after scrolling down to comment section I stopped* 😓😓😂
Are you here to explain the concept or making it more confusing ??? No doubt you can never be a good teacher !
I don't know why every1 is blaming his explanation. I understood it quite well. It must be coz our teacher makes it more complex in classroom than u did. And also i just woke up from bed so my mind was fresh enough to take complex things. It was mostly a Good Work bro... 😀
yeah... even i was surprised seeing people tell that it was made overly complicated... I understood what he meant to convey
This is the best Way to explain it , Ignore idiots who Didn't Get it .
Could use simple name... Complicated names made complication.
Thank you for confusing me
The animation itself is great but it confuses us more.
Change that names are very confusing man 🤔😵
Eg can be easy for better reach, Thank you.
Thank you for confusing us more
There is a difference between devaluation and depreciation. I think you are explaining depreciation, not devaluation.
In English would be better !
So basically the currencies were pegged to physical things used to trade and when the demand of those thing change so the the currencies value in relation tothe other currencies.
But how does that work when today's currencies are no longer pegged to the gold standard. What influences their value in relation to each other, is it debt between countries central banks or how much goods and services countries trade with each other or both or more things I have missed?
Nice effort on the video, but you’ve made it so complicated to understand🤦🏻♂️
NO countries devalue their currency by minting (creating) more currency. What you explained is why the price of good changes. Countries devalue their currency to pay for their government's debt, which may be caused by war or handouts.
Yesss! is this not depreciation? Because supply and demand interfered here.
Do you know what Ted-Ed is? Oh wait, I jut realized, that's how I found your channel. You would be GREAT as an animator and narrator for them! You gotta get in touch with 'em!
+Tell me why :/
Dang it. I was working on a video about the same topic... Oh well. I'll just save that one for later.
Good stuff.
I'll continue my work.
Making it more complex
Wow! that made it more complicated. Besides, that accent makes me even more confused.
Perfect way of complexing a simple subject
20 bags of rice equal 20 bricks is equal to rapi is equal to rambi is equal to darulo.what is this?
You are making more confusion than making it clear. Why can't you explain in simple?
With your rice, bricks..., you lost me😢 There should be an easier way to explain. Thanks for your effort though
Basically what you are trying to say is there is no harm in devaluation of currency. But your concept is only right if the country (here in the example dalluro) can make unlimited amount of currency. but that's not possible if we make unlimited number of a currency (which is similar QE or Quantitative Easing in financial terms) the value of the entire currency becomes less. it also means you can print what you want.
now after this how can u say devaluation is not a problem??? im not trying to prove you wrong or right, im just asking my doubt because you seem to be interested in this and you understand economics. i might be wrong as well.
So, Please discuss!
It looks like that someone has just got u memorised plz explain in your words for better appreciation
333
AM I WRONG OR IS THIS WRONG?
The way I see it:
John
Kumar
Huville
All have & need B, R & C -
But :
John produces access amounts of B to trade for profit
Huville needing B due to unforeseen & or uncontrollable circumstances decides to trade R for B
John not needing R decides that he'll only give 1B for 10R
Kumar needs R due to unforeseen & or uncontrollable circumstances
John has an access amount of R thanks to the trades he makes with Huville who can't trade R as he needs to trade for B
Therefore Kumar trades 10C for 10R with John
Then John decides to make his own currency called Dalluro & sets it as 1Dalluro = 1B
Kumar & Huville do the same, with Kumar's currency being Rapi which equates to 10C & Huvilles Rambi equating to 10R
John : 1Dalluro = 1B
Kumar : 1Rapi = 10C
Huville : 1Rambi = 10R
But :
10C = 10R = 1B
Therefore:
1Dalluro = 10Rapi = 10Rambi
After a while Kumars inability to produce R becomes less prominent so he decides as his need to trade for R isn't as demanding he'll only trade 5C for 10R
As :
John : 1Dalluro = 1B
Kumar : 1Rapi = 10C
Huville : 1Rambi = 10R
But now :
5C = 10R = 1B
Therefore :
Kumar : 1Rapi = 10C
Huville : 1Rambi = 20R
John : 1Dalluro = 2B
&
1Dalluro = 5Rapi = 10Rambi
After a while Huvilles need to trade for B depletes as his inability to produce B has become less prominent so he decides he'll only trade 10R for 3B
As:
Kumar : 1Rapi = 10C
Huville : 1Rambi = 20R
John : 1Dalluro = 2B
But now:
10R = 3B = (3 x 5 = 15C)
Therefore :
Huville : 1Rambi = 20R
John : 1Dalluro = (3B/10R x 20R) or 6B
Kumar : 1Rapi = (15C/10R x 20R) or 30C
&
1Dalluro = (30C/6B) or 5Rapi = (20R/6B) or 3.33Rambi
This is the second video that explains me the value of bricks, clothes and rice when I was wondering why countries would devalue their own currency.
If bricks are popular right now, your first rraction would be to pay more, not creating a whole pyramid scheme with 3 currencies.
Jajajaja
complex names make things more difficult. :(
yes he should've named them (A,B,C) to make them easy to be recalled
So that means, we all asian need USA dollar, why, actually we don need their dolar because oil is also in Asia. That means the story will change one day.
One asian work hard one year, and produce 3 ton of rice, and one worker in USA produce one car in a month. And the 3 ton rice is given to a car. They earn in a month as 12 asian.
If asia produce their own cars, then 3 ton rice will cost 3 cars. And the delirium will be much cheaper. Hahaha lol it is unexample don't post me the rate of cars and rice to rectify me
Can
you please share - Why there is this difference in the currency? How it was started? Isn't it unfair that you have to pay more when you deal with these developed countries? Why so? And how come Japan is developed country that its 1 yen equals to 0.60-0.70rupees (that means not even a rupee?) why?????
Bravo! You did a marvelous job explaining this old chap! My 2 year and I just traded bricks and Dalluros and we both completely understood the terms and conditions of trading using your knowledge. Send me your Rambiapp so I can reward you with a few shekels from our profits!
Hey, constructive criticism. Your animation is VERY good but your script isn't. A good video would be able to explain why a country would do this and point the pros and cons, both for the economy (internal and external), and the average citizen of the country. As others have already said, using fictional countries and currencies, you made it very complex for a 4 minute video. Also, I don't think this answer any of the questions I pointed out above, not even the why.
This is the best example of currency exchange....
Everything else is on other stuff thats not related purly to international traid
I took a advil after this !!! Jesus, my head is still hurting!! Videos is supposed to make u understand stuff not confuse more!! Well pls cut that extra village and compare the relativity between just two to make it simple ... myan oh myan !!!
What If One Countrie's Currency Rate Suddenly becomes very High ... What'll happen to the people who have money in bank what'll be the value of it ?
Kumarville, Johnville , Hurville and Meanwhille everything got fucked🤦
change your channel name to The Complicate Channel. just waste of time
if the value of currency becomes so low that it couldnt sustain a home, then what is the use of currency? it would mean the end of an economy and chaos right?
came here to learn basic economics, turned out have to study a whole new language from a whole new distant planet like earth🌎.
Markets set currency exchange rates, not governments. Currency devaluation and price inflation is the same thing isn't it?
Plz, don't make any more videos...earlier I do have some concept of devaluation .you took it all away...
Funny how a simple word can be rendered unreCOGniseable depending on which syllABLE one stresSES.
Your explanation fucked wirh my brain lol.
I’m more confused than I was.
Deeemmmm!
Use AI voice or pay a voice actor, your accent is not understandable
Complex complexity,don't come again.
Came for an answer, going back with a bag full of questions. Thanks for your attempt tho.
I need to know you South Korea currency is cheaper than India though South Korea is a developed country
wow the video is so great.
idk why the other people are complaining so much but u did a great job!
Don't have cancer treatment in simple cases of cold and cough....keep it simple silly
i couldn't understand the indian guy that was talking making it so difficult for my brain to comprehend
The moment he said Daluro, I realized ok now he's just messing with me
So many variables made video very confusing....Btw animation was g8
Malawian? You're here again? So they devalued again huh 😂😂
See Mrunal Patel's video on the same topic. Explained much better there.
Still haven’t explained why countries like Japan devalue their currency
Could you make it a little more confusing, i think i understood 10% of it..
Nice storytelling brother....I will narrate this story to my brothers son so he will go to sleep early like me
So a currency wich is devalued has increased it's value in relative to other currencies ?
why indian economy is falling is devaluation in past and demonitisation in present are causes.
And you guys made it more complete unfortunately 😅😅
Your accent is so thick if it is an actual brick no nuclear explosion would be able to break it
Why do u have to use such a confusing words as example.
Anyone else catch that swaztika flag on the sun?? lol that came outta nowhere
honestly saying , i did not understand😀
I realised Tenet is easier to understand than the narrator explaining devaluation
What kind of evil monster would make a video like this!!!
it is easier to use A,B or C instead of those complicated names
I am more confused after this video. Maybe I'm not as smart as indians
bhai mjhese galti ho gyi mein is video pe aaya :)
The tribal leader of Johnville reminds me the leader of Trumpville
I need my 4 minutes back ASAP
How devaluation helps Indira to repay debt ???
The Name should be everything more confused