/biz/ - Business & Finance

[Anonymous No.1262208]

Why does everyone get mad a China for manipulating their currency when their yaun is 6.5 per U.S. Dollar. and the Japenese Yen is like 112 per Dollar? Wouldn't Japan be way more competitive?
Is there a good book to learn how floating currencies work?

[Anonymous No.1262227]

>>1262208

[Anonymous No.1262243]

>>1262208
Try Google first... The premise of your question is literally the dumbest idea of currency I've ever heard. The numbers don't mean jack shit. We could double all the US money for fun (everyone with 1000 now has 2000) and nothing would change. There's no universal constant of currency worth that means that Japan is 20 times cheaper. Everything just costs more there and there's more yen in this world.

[Anonymous No.1262268]

>>1262243
>everyone with 1000 now has 2000) and nothing would change.
i don't really go on this board but is inflation a meme here or something or are you actually serious?

[Anonymous No.1262274]

>>1262208

Holy shit you must be 12

[Anonymous No.1262282]

>>1262274
xD le memes

[Anonymous No.1262686]

This question has quite an obvious answer. Simply put, a devaluated currency (meaning a currency worth less) makes exported products cheaper abroad, thereby increasing demand for your exports and domestically decreasing demand for imported goods. Just think about it. If the dollar suddenly depreciated and it had less purchasing power, what products would you buy? Imported products would be more expensive (because they appreciated against the dollar) but American products would be cheaper. That is why the value of the dollar increasing it not necessarily a good thing, given our trade deficit.

[Anonymous No.1262847]

>>1262268
...

[Anonymous No.1262863]

>>1262208
What are we measuring again??