(Macro) Episode 33: Exchange Rates
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- Опубликовано: 9 фев 2025
- How do currency values rise and fall? Why would a country want to manipulate the value of its own currency?
"(Macro) Episode 33: Exchange Rates" by Dr. Mary J. McGlasson is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License.
This is a really, really amazing video, all of them are! They give great explanations with just the right amount of humor. I'm not going to be revisiting IGCSE economics after my boards in May this year, but I'm going to recommend this source to everyone who is, thanks again!
You are exactly correct. So theoretically, overvalued or undervalued currencies will self-correct by that mechanism.
You are a life-saving genius
I've always found this stuff difficult to comprehend. You have a gift for simplifying this stuff.....thank you
Marry u can't imagine how much help u've provided me with this one, THANK U VERY MUCH
12 years later, still a good vid
good job! great narrator.
@Xenu That's a lot of questions!! Yes, because the securities market affects the money supply (see the video on Monetary policy), it affects both the currency value and the market interest rate. Most rates are market (i.e., supply and demand) driven, but some, like the discount rate in the US, are set directly by the Central Bank.
if I have 5 apples, how many do i have in euros?
grear video --- from a cfa and mba grad .. cheers!
thank u i now i understand exchange rater..... PRAISE THE LORD.
Awesome, thank you for taking the time to do this video!
OMG!! Thank you so much!! This was very helpful, and concise!
Love your voice,too! I wish you were my teacher! I will never skip a day! Hihihi
I LOVE MJMFOODIE!!!!
Explains everything soo well, unlike my uni lecturers lol :)
God Bless yaaa :D
Great video!
i wish i could give you my tuition! my macro professor was horrible this year! keep up the good work!
@sirellyn I hope that's not the impression that I gave -- I had hoped it was clear that the equilibrium price of a currency is market-driven (i.e., demand AND supply)? In fact, when I talk about a country manipulating the value of its own currency, that definitely comes from the supply side . . .
THANK YOU SO MUCH FOR THIS. YOU SAVE MY EBC EXAM ! YaY!
Thank you!! :) This is awesome
Very helpful! Thank you
Whoa whoa. This video assumes the appreciation or depreciation of a currency is only due to it's demand, using that assumption it assumes that appreciating dollars make others buy less goods.
MOST of the time, appreciation/depreciation with currency is from new money creation rate from the central bank. When this is the case (as it mostly is) a cheaper currency buys less of what it did before. There's actually more incentive for appreciation. Money itself gains value.
Thanks for your video ! Very helpful;
you have been very helpful thank you :) btw do you draw the pictures yourself ?
It's a very good tutorial. Now I have a better understanding of the topic. Thank you.
Very helpful, thanks!
really helpful..............................
This is the only topic that confuses me.. now it makes sense!
Very good video, one question. As the Canadian dollar depreciates and demand for Canadian goods increase from abroad, surely this increases demand for Canadian dollar leading to an appreciation in the Canadian dollar?
Is there a correlation between the amount of securities a government sells and the value of its currency? Who sets the rate of interest on securities? Is that also the Federal Reserve? Does the interest rate on securities have any effect on other interest rates?
very helpful!
complete;y clear !
Thank you!
Ignore this comment. This is just to prove to my ECON-1 teacher that I watch things she tells me to watch.
Perfecto
I like your voice :)
Euro, or eurodollar? I'm guessing you mean the first, which is the currency used by (most) members of the European Union. The Eurodollar is something very different...
In this video, all comparisons are bilateral, or only between two currencies, so the only way the euro would have an effect on say, the value of the US$ vs Can$, is if Canadians suddenly dump their holdings of US dollars because they want to hold Euros instead. Then the value of the US$ would fall relative to the Canadian dollar.
@FreeSoul790 central banks interest rate can affect both private bank and the Forex. like the OMO if the central banks would increase it's rates to incr. the demand for T-bond can, which decrease the money in an economy which increase its value in the FOREX. now the private banks only relay on corp. bond rate and corps. base their rates on CB's rates. i am not sure about it but i think its right and my explanation is not complete due to the limit of char. here hope i have helped even a little
the only problem with your videos is that you speak too fast, some people may have a hard time understanding what you are trying to explain, and get confused. just my opinion though, anyway your videos are very helpful and informative :)
big thanks! :-)
Why would the foreign country keep its good (in this case, Canada and its lumber) at the same price ($50,000 Canadian dollars) if its currency were depreciating and the good was worth more than 50,000 Canadian dollars in the reduced dollar value? I recognize how that could be beneficial to the economy as a whole, but why would the individual producers want to sell their lumber for less than its worth (as U.S. citizens are plausibly willing to pay almost US$50,000 for it, not accounting for inflation or the appreciated currency, because that wouldn't make enough of a difference to make the lumber worth only US$32,000), or less than market equilibrium?
@liebstandarteadolf Hopefully I don't come off as viewing the practice of pegging as right or wrong, just stating why it is that the US complains about it...? Thanks for the comment.
what are the abbrs of each axis and curves?
thank you very much !
Imports are not necessarily bad though
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r u from nz haha
agreed
thanks for this :) I feel cool as beyonce now
I think if your planning a vacation, you could lose your mind worrying about exchange rates. Just use your credit card when you get there. Use banks for currency exchanges to save on added fees.
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I lol'd at your 'Canadian' dollar bill :P $5 is the lowest our bills go. Google 'Loonie'.
IB ECON FTW
Iagree