Re:Japanese yen weakens to 160 against the USD since 1990
by throwaway4good on Monday April 29, 2024 @02:07AM
(#40194994)
When a central bank expands the money supply (by changing their interest rate or doing QE) it doesn't spread linearly in the economy. There is a much more complex pattern. And the dynamics of the dominant currency which has all other curencies subordinate to it are completely different from that of a mostly local currency.
But as I wrote. This is a controversial subject. And there are economists out there who will tell you that the special status of the US dollar makes no difference at all and this de Gaulle guy just was upset about losing some colonies.
Re:Japanese yen weakens to 160 against the USD since 1990
by kurthr on Monday April 29, 2024 @01:44AM
(#40194867)
You somehow think that the demand/supply curve is linear.
Why? It would be quite odd. Certainly Japan has generated far more currency and debt over the last 35 years while inflation stayed low (and the relative value of Yen stayed high). I don't see any explanation for that here any more than the yearly gyrations of other currencies crypto or fiat.
Re:Japanese yen weakens to 160 against the USD since 1990
by CorrectHorseBat on Monday April 29, 2024 @01:40AM
(#40194835)
Demand can be a function of supply, so no it's not that simple.
Re:Japanese yen weakens to 160 against the USD since 1990
by logicchains on Monday April 29, 2024 @01:48AM
(#40194886)
Economics 101: the supply curve is not a linear relationship. https://en.wikipedia.org/wiki/Supply_and_demand
Price = demand/supply.