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    Default Re: Today in the economy

    Quote Originally Posted by CGM View Post
    Quote Originally Posted by killersheep View Post
    Quote Originally Posted by CGM View Post

    Hmmm, now that I think about it, I suppose if domestic consumption goes up, then business is better and then more people want to invest in your country which would tend to upward pressure on your exchange rate. But it seems like an "other things being equal scenario". It depends what is happening in the other countries that the domestic currency is being measured against.

    Interestingly enough, the Canada-US exchange rate (the value of the Canadian Dollar relative to the US Dollar) has fallen heavily in the last several months
    Exchange rates by default are compared to the American dollar though.
    I seem to remember something about the 1972 value of the dollar being considered the true value of "one dollar" and may be what they are refering to here. Of course that may have been a drug induced conversation I had with lizard people as well.
    The way you used the word "though" makes me think you are trying to make a point about what I said, but I'm not sure what it is.
    Simply poor word choice on my part, my apologies for any confusion I have caused. As for the rest of that rambling I am hoping to verify if that is true or not and that relates to your original statement of "other things being equal scenario" and getting clarity on that. Because the logic of the meaning of this measurement differs greatly if compared to a previous US dollar OR compared to a specific foreign currency OR some other index.
    Last edited by killersheep; 03-06-2009 at 05:10 PM.
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