Such a situation can only happen when no physical assets back the currency. These currencies are called fiat currencies, and they are the most common today. In the past, most currencies were backed by gold. For instance, the dollar was backed by gold until Richard Nixon changed this policy ...
Inflation and currencies - How Charts Can Make You Money (Third Edition) - 16ELSEVIERHow Charts Can Make You Money
What will happen to interest rates and all that they affect if government debt growth isn’t slowed? 如果政府债务增长不放缓,利率及其影响会发生什么变化? Can a big, important country that has a major reserve currency like the US go broke—and, if so, what would that look like? 像美国这样...
What will happen to interest rates and all that they affect if government debt growth isn’t slowed? 如果政府债务增长不放缓,利率及其影响会发生什么变化? Can a big, important country that has a major reserve currency like the US go broke—and, if so, what would that look like? 像美国这样...
Inflation is when a certain form of currency starts to have less value over time. It is caused mainly by two things: people's perception of value, and the economic principle of supply and demand. We have already examined some of the ways that people's perceptions of a currency's value ...
Why do currencies prone to inflation have to pay higher interest rates? Explain how a decline in the value of a bank's assets could lead to less lending activity. Why do credit spread rise significantly during financial crisis? Why are interest rates on U.S. Treasury securities low...
What eCommerce Challenges and Trends Does Inflation Bring Out? Under the logic that online prices are on the rise, eCommerce store owners are supposed to see more profit. However, it’s not all that simple. With the supply chain impacts on freight costs and stock availability, here come new...
How to Prepare for Hyperinflation Hyperinflation doesn't happen very often, especially in developed countries where a central bank focuses on reigning in and controlling inflationary periods. You can take some actions, however, to reduce the effects that normal or high inflation has on your portfolio...
Below are the shifts in inflation and the real broad effective exchange rate, an index measuring the value of the U.S. dollar relative to a basket of foreign currencies adjusted for inflation (realterms). The data for both are presented monthly as a percentage change from the previous ye...
The U.S. dollar is still perceived as asafe havenin an economically uncertain world. This factor—even more so than interest rates, inflation, or other considerations—has proven to be significant for maintaining the relative value of the U.S. dollar. One opposing force regar...