Sunday, April 6, 2008
Value of Dollar
We were talking about this in Government the other day and I thought it related to Econ. The value of the dollar is extremely weak right now compared to what it has been, and compared to other countries. It used to be that you could go over to Europe and get like 2 Euros for every 1 dollar bill. Now it's the other way around. Mr. Swantz was talking about how now because of this, people from other countries want to travel here more, because they can get more for their money than we would if we would go over seas. I was also wondering if this affected our imported and exported goods. Do businesses outside of the United States get a better deal on goods we give them, than we do from goods imported into the United States?
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6 comments:
International relationships with money is like rocket science on roids, almost another dimension just because it is so different. To really understand it is like borderline impossible just because the values of all currency are constantly changing and if our dollar goes down, other currency goes up, if other currency goes down then our dollar might go down or it might not be affected at all or it might go down too, its just nuts trying to figure it all out and keeping it straight which is why I don't know how to explain or even predict.
ummm thats all I think..
Yeah...this is very true, the dollar is pretty weak right now. Probably because our economy is going through a recession right now. I think that it cycles back and forth though, and hopefully in a few years, our dollar will be right back up there with the euro.
This makes me sad because if I were to get the opportunity to travel to another country (which I won't), things will cost a ton of money. I always thought it was so cool people could go to other countries and buy things at an extremely low price.
This is an interesting thought. If our dollar is weak and there is an increase in tourists coming here to put more money into our economy (as clothes, tech gear, etc. is so much cheaper here) does this increase our economy's strength? Do those who come because of the weakness of the dollar actually make it stronger? This could be way off the point, but I'm not totally sure I understand it. Tony put it nicely as "rocket science on roids" so that does not give me much confidence :)
i dont understand why everyone is saying the dollar is weak... its just hard to rip in half as it was before. I dont understand how ppl see coming here to buy things is cheaper... Would you spend over 500 dollars on a plane ticket just to save 80 bucks on a pair of jeans??? i sure wouldnt!
International dollar comparisons are complicated - like Tony says. Well, maybe not exactly like Tony says, but mostly.
As for Taylor's original question - our exporters are helped with a weak dollar - people in other countries will buy more of our goods at a price they like. And yes, this can help make the dollar stronger (and increase production, increasing GDP, etc).
This is from the Chicago Federal Reserve, assuming the link shows up okay: http://www.chicagofed.org/consumer_information/strong_dollar_weak_dollar.cfm
It might help, if you're interested. :)
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