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Currency Question Can't Post I know that currencies increase or decrease in value according to supply and demand,the nations economy,etc. But doesnt that mean that the nations with the strongest economies/richest nations will have the highest value currencies? Then why is 1 yen worth only 0.008201 dollars, when Japan has a very strong economy? Why are Kuwait,Malta,and Bahrain at the top 3 of the highest valued currency units, while the UK Pound is 6th and the US Dollar 13th? http://en.wikipedia.org/...valued_currency_unit burashid Teller Jun 5, 2007, 9:21 AM Post #1 of 7 (2251 views)

Re: [burashid] Currency Question [In reply to] Can't Post The example you provided and your link is not an indicator of overall economic health. Canada is fast closing in to PAR with the US dollar, their economy is hotter than America. Maybe through some ratios you can detemrine this, however, America still remains HUGE in terms of overall strength. I'm not sure what the Currency value is measuring myself. I can say that Japan does NOT have an incredible economy. Strong, perhaps, but what are interest rates there? .05 %? And they STILL can't spur investment. There is no single value that is 'optimal' merely comparison against major vehicle currencies like the USD, EURO, or in the MIDEAST the dnar. econmod Broker / Moderator Jun 5, 2007, 6:41 PM Post #2 of 7 (2242 views)

Re: [econmod] Currency Question [In reply to] Can't Post so what makes those currencies the highest valued? burashid Teller Jun 6, 2007, 9:22 AM Post #3 of 7 (2231 views)

Re: [burashid] Currency Question [In reply to] Can't Post Like you said, it's by supply and demand. Demand is loosely tied to the strength of an economy. Supply is somewhat arbitrarily determined by a nation's banking organization. ie, a lower supply will make the value higher. ______________ Talk hard. http://jdvn100.googlepages.com/crossroads Jdvn1 Banker Jun 7, 2007, 5:25 AM Post #4 of 7 (2216 views)

Re: [Jdvn1] Currency Question [In reply to] Can't Post 1) so what is the best indicator of overall economic health, the gdp per capita? 2) why is the yen so low compared to the dollar? burashid Teller Jun 7, 2007, 7:03 AM Post #5 of 7 (2212 views)

Re: [burashid] Currency Question [In reply to] Can't Post What's better for your body to function? Your heart, liver, brain, blood....? You get the idead, they're all important! There is no ONE single measure of economic success, however, you watch a number of indicators. GDP/capita is a good one, debt/capita may be good too. All sorts of indicators including inflation, income, etc., all factor in. Who has the strongest? Well you probably would measure along fields of similar economic size first...... econmod Broker / Moderator Jun 7, 2007, 4:52 PM Post #6 of 7 (2211 views)

Re: [econmod] Currency Question [In reply to] Can't Post Thanks.. one more question..why is the yen SOO low compared to the dollar and most other currencies? burashid Teller Jun 9, 2007, 2:27 PM Post #7 of 7 (2193 views)

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