There is at least a rough level to which a currency should be worth, as detailed in the Purchasing Power Parity Theory. The exchange rate, in the long run, needs to be at the level which a basket of goods costs the same in two currencies. Thus, if a Mickey Mantle rookie card, for instance, costs $50,000 Canadian and $25,000 U.S., the exchange rate should be two Canadian dollars for one American dollar.
9
105 reads
CURATED FROM
IDEAS CURATED BY
The idea is part of this collection:
Learn more about moneyandinvestments with this collection
How to use storytelling to influence and persuade
How to create a compelling narrative
How to structure your story for maximum impact
Related collections
Similar ideas to The Worth Of The Currency
1933 - President Franklin D. Roosevelt had gold confiscated and people were forced to accept paper money for their gold. The government needed people to adopt the inflated paper and they used force.
1940s ...
On March 3rd 1933, President Franklin D. Roosevelt closed all the banks in the U.S.A.
Banks held large amounts of Gold which were backing all the available U.S dollars. At those times there was a fixed exchange rate between U.S dollars and Gold.
Gold standard ended officially when pr...
If your product costs more to produce than it does for the retailer to sell, then there’s no point trying to get it into stores. Retailers want at least two or three times markup on the wholesale price that they will pay for your items, so you need to work out how much this is an...
Read & Learn
20x Faster
without
deepstash
with
deepstash
with
deepstash
Personalized microlearning
—
100+ Learning Journeys
—
Access to 200,000+ ideas
—
Access to the mobile app
—
Unlimited idea saving
—
—
Unlimited history
—
—
Unlimited listening to ideas
—
—
Downloading & offline access
—
—
Supercharge your mind with one idea per day
Enter your email and spend 1 minute every day to learn something new.
I agree to receive email updates