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Euro v. Dollar

YYW
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3/14/2015 12:58:10 PM
Posted: 1 year ago
The Euro is nearly parallel to the dollar in value. I think it's like 1.06 to 1.00. Who thinks that the Euro will surpass the dollar? How do you guys feel about that?
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Ore_Ele
Posts: 25,980
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3/14/2015 2:24:08 PM
Posted: 1 year ago
At 3/14/2015 12:58:10 PM, YYW wrote:
The Euro is nearly parallel to the dollar in value. I think it's like 1.06 to 1.00. Who thinks that the Euro will surpass the dollar? How do you guys feel about that?

The Euro is already past the dollar. 1 Euro = 1.05 USD. Truth is that is has always been more than the dollar and is actually falling in value. Just last year is was almost 1.40 USD.
"Wanting Red Rhino Pill to have gender"
YYW
Posts: 36,305
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3/14/2015 2:30:13 PM
Posted: 1 year ago
At 3/14/2015 2:24:08 PM, Ore_Ele wrote:
At 3/14/2015 12:58:10 PM, YYW wrote:
The Euro is nearly parallel to the dollar in value. I think it's like 1.06 to 1.00. Who thinks that the Euro will surpass the dollar? How do you guys feel about that?

The Euro is already past the dollar. 1 Euro = 1.05 USD. Truth is that is has always been more than the dollar and is actually falling in value. Just last year is was almost 1.40 USD.

lol sorry... I meant that the other way around.

Who thinks the dollar will pass the Euro?
Tsar of DDO
ResponsiblyIrresponsible
Posts: 12,398
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3/14/2015 2:35:37 PM
Posted: 1 year ago
At 3/14/2015 2:30:13 PM, YYW wrote:
At 3/14/2015 2:24:08 PM, Ore_Ele wrote:
At 3/14/2015 12:58:10 PM, YYW wrote:
The Euro is nearly parallel to the dollar in value. I think it's like 1.06 to 1.00. Who thinks that the Euro will surpass the dollar? How do you guys feel about that?

The Euro is already past the dollar. 1 Euro = 1.05 USD. Truth is that is has always been more than the dollar and is actually falling in value. Just last year is was almost 1.40 USD.

lol sorry... I meant that the other way around.

Who thinks the dollar will pass the Euro?

I think it's likely judging by the current trajectory of the U.S. economy relative to the eurozone. The U.S. is looking to normalizing interest rates later this year as the economic outlook improves, and the eurozone is still in the gutter, and the ECB is (finally) doing something about it, and is purchasing bonds at a rate of about 60 billion euros per month until September 2016, though there's reason to think they'll continue past that point. Should they continue, the euro would continue to depreciate relative to the dollar--and perhaps the dollar would "pass" it, though I tend to think that the focus ought to be more on relative movement than the actual exchange rate value.
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Vox_Veritas
Posts: 7,074
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3/14/2015 4:05:45 PM
Posted: 1 year ago
At 3/14/2015 12:58:10 PM, YYW wrote:
The Euro is nearly parallel to the dollar in value. I think it's like 1.06 to 1.00. Who thinks that the Euro will surpass the dollar? How do you guys feel about that?

It seems to me that the Euro's value will probably increase some after this crap with Russia ends.
Call me Vox, the Resident Contrarian of debate.org.

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ResponsiblyIrresponsible
Posts: 12,398
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3/15/2015 11:40:58 AM
Posted: 1 year ago
Just came across this: http://www.rte.ie...

"[Goldman] predicted that the euro will fall through parity with the dollar within a year and plunge to a new record low of $0.80 by the end of 2017. Goldman's outlook for the euro is now the gloomiest of all major financial institutions. It comes at the end of a week that saw the European Central Bank launch its "quantitative easing" bond-buying stimulus programme and several banks slash their forecasts for the single currency. Goldman now sees the euro at $0.95 within 12 months."

So, according to Goldman, the dollar will in fact pass the euro within a year.
~ResponsiblyIrresponsible

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Greyparrot
Posts: 14,295
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3/15/2015 2:05:13 PM
Posted: 1 year ago
The value of goods is worth x euros and y dollars. it is just a number.

A useful comparison of euro vs. dollar is to compare devaluing rates of the currencies based on printing rates.
ResponsiblyIrresponsible
Posts: 12,398
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3/15/2015 7:12:32 PM
Posted: 1 year ago
At 3/15/2015 2:05:13 PM, Greyparrot wrote:
The value of goods is worth x euros and y dollars. it is just a number.

A useful comparison of euro vs. dollar is to compare devaluing rates of the currencies based on printing rates.

There's absolutely no correlation, and you know it. It's much more complex than "printing X amount of money leads to y drop in the exchange rate." Moves in exchange rates have to do with expectations of future exchange rates, monetary policy regimes, expected inflation, interest rates, states of the economy, and much else.

For instance, the Fed has "printed" over $3 trillion, but the dollar has been appreciating. Why? Because the U.S. economy is improving, whereas the rest of the world is doing terribly. You'll note, also, that "money" printing was hardly inflationary--you can attribute about a 50-basis-point uptick in inflation to QE, but that's it, and inflation is still low.
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Greyparrot
Posts: 14,295
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3/15/2015 8:07:01 PM
Posted: 1 year ago
At 3/15/2015 7:12:32 PM, ResponsiblyIrresponsible wrote:
At 3/15/2015 2:05:13 PM, Greyparrot wrote:
The value of goods is worth x euros and y dollars. it is just a number.

A useful comparison of euro vs. dollar is to compare devaluing rates of the currencies based on printing rates.

There's absolutely no correlation, and you know it. It's much more complex than "printing X amount of money leads to y drop in the exchange rate." Moves in exchange rates have to do with expectations of future exchange rates, monetary policy regimes, expected inflation, interest rates, states of the economy, and much else.

For instance, the Fed has "printed" over $3 trillion, but the dollar has been appreciating. Why? Because the U.S. economy is improving, whereas the rest of the world is doing terribly. You'll note, also, that "money" printing was hardly inflationary--you can attribute about a 50-basis-point uptick in inflation to QE, but that's it, and inflation is still low.

Oh please, don't even pretend printing more money than is destroyed raises the value of any currency.
ResponsiblyIrresponsible
Posts: 12,398
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3/15/2015 8:08:56 PM
Posted: 1 year ago
At 3/15/2015 8:07:01 PM, Greyparrot wrote:
At 3/15/2015 7:12:32 PM, ResponsiblyIrresponsible wrote:
At 3/15/2015 2:05:13 PM, Greyparrot wrote:
The value of goods is worth x euros and y dollars. it is just a number.

A useful comparison of euro vs. dollar is to compare devaluing rates of the currencies based on printing rates.

There's absolutely no correlation, and you know it. It's much more complex than "printing X amount of money leads to y drop in the exchange rate." Moves in exchange rates have to do with expectations of future exchange rates, monetary policy regimes, expected inflation, interest rates, states of the economy, and much else.

For instance, the Fed has "printed" over $3 trillion, but the dollar has been appreciating. Why? Because the U.S. economy is improving, whereas the rest of the world is doing terribly. You'll note, also, that "money" printing was hardly inflationary--you can attribute about a 50-basis-point uptick in inflation to QE, but that's it, and inflation is still low.

Oh please, don't even pretend printing more money than is destroyed raises the value of any currency.

I never once said that--those words literally are nowhere in my post, nor did I suggest any type of causation of that order. I said that it was much more complex than you are suggesting, and that "money printing" need not lead to a *depreciating* currency.

It would be helpful for you to abandon, just for a moment, this dogmatic thinking of "money printing raises inflation and destroys the currency and is this ipso facto bad" and consider that we actually have six years of data on this. They don't say what you think they say.
~ResponsiblyIrresponsible

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Greyparrot
Posts: 14,295
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3/15/2015 8:12:20 PM
Posted: 1 year ago
At 3/15/2015 8:08:56 PM, ResponsiblyIrresponsible wrote:
At 3/15/2015 8:07:01 PM, Greyparrot wrote:
At 3/15/2015 7:12:32 PM, ResponsiblyIrresponsible wrote:
At 3/15/2015 2:05:13 PM, Greyparrot wrote:
The value of goods is worth x euros and y dollars. it is just a number.

A useful comparison of euro vs. dollar is to compare devaluing rates of the currencies based on printing rates.

There's absolutely no correlation, and you know it. It's much more complex than "printing X amount of money leads to y drop in the exchange rate." Moves in exchange rates have to do with expectations of future exchange rates, monetary policy regimes, expected inflation, interest rates, states of the economy, and much else.

For instance, the Fed has "printed" over $3 trillion, but the dollar has been appreciating. Why? Because the U.S. economy is improving, whereas the rest of the world is doing terribly. You'll note, also, that "money" printing was hardly inflationary--you can attribute about a 50-basis-point uptick in inflation to QE, but that's it, and inflation is still low.

Oh please, don't even pretend printing more money than is destroyed raises the value of any currency.

I never once said that--those words literally are nowhere in my post, nor did I suggest any type of causation of that order. I said that it was much more complex than you are suggesting, and that "money printing" need not lead to a *depreciating* currency.

It would be helpful for you to abandon, just for a moment, this dogmatic thinking of "money printing raises inflation and destroys the currency and is this ipso facto bad" and consider that we actually have six years of data on this. They don't say what you think they say.

I didn't say all inflation destroys currency, a certain level of inflation is actually necessary.
ResponsiblyIrresponsible
Posts: 12,398
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3/15/2015 8:17:41 PM
Posted: 1 year ago
At 3/15/2015 8:12:20 PM, Greyparrot wrote:
At 3/15/2015 8:08:56 PM, ResponsiblyIrresponsible wrote:
At 3/15/2015 8:07:01 PM, Greyparrot wrote:
At 3/15/2015 7:12:32 PM, ResponsiblyIrresponsible wrote:
At 3/15/2015 2:05:13 PM, Greyparrot wrote:
The value of goods is worth x euros and y dollars. it is just a number.

A useful comparison of euro vs. dollar is to compare devaluing rates of the currencies based on printing rates.

There's absolutely no correlation, and you know it. It's much more complex than "printing X amount of money leads to y drop in the exchange rate." Moves in exchange rates have to do with expectations of future exchange rates, monetary policy regimes, expected inflation, interest rates, states of the economy, and much else.

For instance, the Fed has "printed" over $3 trillion, but the dollar has been appreciating. Why? Because the U.S. economy is improving, whereas the rest of the world is doing terribly. You'll note, also, that "money" printing was hardly inflationary--you can attribute about a 50-basis-point uptick in inflation to QE, but that's it, and inflation is still low.

Oh please, don't even pretend printing more money than is destroyed raises the value of any currency.

I never once said that--those words literally are nowhere in my post, nor did I suggest any type of causation of that order. I said that it was much more complex than you are suggesting, and that "money printing" need not lead to a *depreciating* currency.

It would be helpful for you to abandon, just for a moment, this dogmatic thinking of "money printing raises inflation and destroys the currency and is this ipso facto bad" and consider that we actually have six years of data on this. They don't say what you think they say.

I didn't say all inflation destroys currency, a certain level of inflation is actually necessary.

You said money printing depreciates a currency--the mechanism through which it does that is excess inflation.

So, thank you for admitting that your initial argument was faulty, and that plenty of other factors bear on exchange rates than "money printing," which has actually been rather negligent in terms of its actual impacts over the past few years.
~ResponsiblyIrresponsible

DDO's Economics Messiah
Greyparrot
Posts: 14,295
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3/15/2015 8:35:01 PM
Posted: 1 year ago
At 3/15/2015 8:17:41 PM, ResponsiblyIrresponsible wrote:
At 3/15/2015 8:12:20 PM, Greyparrot wrote:
At 3/15/2015 8:08:56 PM, ResponsiblyIrresponsible wrote:
At 3/15/2015 8:07:01 PM, Greyparrot wrote:
At 3/15/2015 7:12:32 PM, ResponsiblyIrresponsible wrote:
At 3/15/2015 2:05:13 PM, Greyparrot wrote:
The value of goods is worth x euros and y dollars. it is just a number.

A useful comparison of euro vs. dollar is to compare devaluing rates of the currencies based on printing rates.

There's absolutely no correlation, and you know it. It's much more complex than "printing X amount of money leads to y drop in the exchange rate." Moves in exchange rates have to do with expectations of future exchange rates, monetary policy regimes, expected inflation, interest rates, states of the economy, and much else.

For instance, the Fed has "printed" over $3 trillion, but the dollar has been appreciating. Why? Because the U.S. economy is improving, whereas the rest of the world is doing terribly. You'll note, also, that "money" printing was hardly inflationary--you can attribute about a 50-basis-point uptick in inflation to QE, but that's it, and inflation is still low.

Oh please, don't even pretend printing more money than is destroyed raises the value of any currency.

I never once said that--those words literally are nowhere in my post, nor did I suggest any type of causation of that order. I said that it was much more complex than you are suggesting, and that "money printing" need not lead to a *depreciating* currency.

It would be helpful for you to abandon, just for a moment, this dogmatic thinking of "money printing raises inflation and destroys the currency and is this ipso facto bad" and consider that we actually have six years of data on this. They don't say what you think they say.

I didn't say all inflation destroys currency, a certain level of inflation is actually necessary.

You said money printing depreciates a currency--the mechanism through which it does that is excess inflation.

So, thank you for admitting that your initial argument was faulty, and that plenty of other factors bear on exchange rates than "money printing," which has actually been rather negligent in terms of its actual impacts over the past few years.

Riiight... theres no correlation...

http://en.wikipedia.org...
ResponsiblyIrresponsible
Posts: 12,398
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3/15/2015 8:40:31 PM
Posted: 1 year ago
At 3/15/2015 8:35:01 PM, Greyparrot wrote:
At 3/15/2015 8:17:41 PM, ResponsiblyIrresponsible wrote:
At 3/15/2015 8:12:20 PM, Greyparrot wrote:
At 3/15/2015 8:08:56 PM, ResponsiblyIrresponsible wrote:
At 3/15/2015 8:07:01 PM, Greyparrot wrote:
At 3/15/2015 7:12:32 PM, ResponsiblyIrresponsible wrote:
At 3/15/2015 2:05:13 PM, Greyparrot wrote:
The value of goods is worth x euros and y dollars. it is just a number.

A useful comparison of euro vs. dollar is to compare devaluing rates of the currencies based on printing rates.

There's absolutely no correlation, and you know it. It's much more complex than "printing X amount of money leads to y drop in the exchange rate." Moves in exchange rates have to do with expectations of future exchange rates, monetary policy regimes, expected inflation, interest rates, states of the economy, and much else.

For instance, the Fed has "printed" over $3 trillion, but the dollar has been appreciating. Why? Because the U.S. economy is improving, whereas the rest of the world is doing terribly. You'll note, also, that "money" printing was hardly inflationary--you can attribute about a 50-basis-point uptick in inflation to QE, but that's it, and inflation is still low.

Oh please, don't even pretend printing more money than is destroyed raises the value of any currency.

I never once said that--those words literally are nowhere in my post, nor did I suggest any type of causation of that order. I said that it was much more complex than you are suggesting, and that "money printing" need not lead to a *depreciating* currency.

It would be helpful for you to abandon, just for a moment, this dogmatic thinking of "money printing raises inflation and destroys the currency and is this ipso facto bad" and consider that we actually have six years of data on this. They don't say what you think they say.

I didn't say all inflation destroys currency, a certain level of inflation is actually necessary.

You said money printing depreciates a currency--the mechanism through which it does that is excess inflation.

So, thank you for admitting that your initial argument was faulty, and that plenty of other factors bear on exchange rates than "money printing," which has actually been rather negligent in terms of its actual impacts over the past few years.

Riiight... theres no correlation...

http://en.wikipedia.org...

That's a complete distortion. Zimbabwe had a debt nominally denominated in a different currency, and couldn't borrow in order to finance deficits, so it printed literally in order to finance government outlays. The U.S. doesn't do that. The Fed is statutorily prohibited from directly purchasing U.S. Treasury debt.

Make sure you know what you're talking about before you throw the most easily refuted arguments against the wall, yearning that they'll stick.
~ResponsiblyIrresponsible

DDO's Economics Messiah
Greyparrot
Posts: 14,295
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3/15/2015 8:41:55 PM
Posted: 1 year ago
At 3/15/2015 8:40:31 PM, ResponsiblyIrresponsible wrote:
At 3/15/2015 8:35:01 PM, Greyparrot wrote:
At 3/15/2015 8:17:41 PM, ResponsiblyIrresponsible wrote:
At 3/15/2015 8:12:20 PM, Greyparrot wrote:
At 3/15/2015 8:08:56 PM, ResponsiblyIrresponsible wrote:
At 3/15/2015 8:07:01 PM, Greyparrot wrote:
At 3/15/2015 7:12:32 PM, ResponsiblyIrresponsible wrote:
At 3/15/2015 2:05:13 PM, Greyparrot wrote:
The value of goods is worth x euros and y dollars. it is just a number.

A useful comparison of euro vs. dollar is to compare devaluing rates of the currencies based on printing rates.

There's absolutely no correlation, and you know it. It's much more complex than "printing X amount of money leads to y drop in the exchange rate." Moves in exchange rates have to do with expectations of future exchange rates, monetary policy regimes, expected inflation, interest rates, states of the economy, and much else.

For instance, the Fed has "printed" over $3 trillion, but the dollar has been appreciating. Why? Because the U.S. economy is improving, whereas the rest of the world is doing terribly. You'll note, also, that "money" printing was hardly inflationary--you can attribute about a 50-basis-point uptick in inflation to QE, but that's it, and inflation is still low.

Oh please, don't even pretend printing more money than is destroyed raises the value of any currency.

I never once said that--those words literally are nowhere in my post, nor did I suggest any type of causation of that order. I said that it was much more complex than you are suggesting, and that "money printing" need not lead to a *depreciating* currency.

It would be helpful for you to abandon, just for a moment, this dogmatic thinking of "money printing raises inflation and destroys the currency and is this ipso facto bad" and consider that we actually have six years of data on this. They don't say what you think they say.

I didn't say all inflation destroys currency, a certain level of inflation is actually necessary.

You said money printing depreciates a currency--the mechanism through which it does that is excess inflation.

So, thank you for admitting that your initial argument was faulty, and that plenty of other factors bear on exchange rates than "money printing," which has actually been rather negligent in terms of its actual impacts over the past few years.

Riiight... theres no correlation...

http://en.wikipedia.org...

That's a complete distortion. Zimbabwe had a debt nominally denominated in a different currency, and couldn't borrow in order to finance deficits, so it printed literally in order to finance government outlays. The U.S. doesn't do that. The Fed is statutorily prohibited from directly purchasing U.S. Treasury debt.

Make sure you know what you're talking about before you throw the most easily refuted arguments against the wall, yearning that they'll stick.

Yo dude i'm agreeing with you yo.
ResponsiblyIrresponsible
Posts: 12,398
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3/15/2015 8:43:00 PM
Posted: 1 year ago
At 3/15/2015 8:41:55 PM, Greyparrot wrote:
At 3/15/2015 8:40:31 PM, ResponsiblyIrresponsible wrote:
At 3/15/2015 8:35:01 PM, Greyparrot wrote:
At 3/15/2015 8:17:41 PM, ResponsiblyIrresponsible wrote:
At 3/15/2015 8:12:20 PM, Greyparrot wrote:
At 3/15/2015 8:08:56 PM, ResponsiblyIrresponsible wrote:
At 3/15/2015 8:07:01 PM, Greyparrot wrote:
At 3/15/2015 7:12:32 PM, ResponsiblyIrresponsible wrote:
At 3/15/2015 2:05:13 PM, Greyparrot wrote:
The value of goods is worth x euros and y dollars. it is just a number.

A useful comparison of euro vs. dollar is to compare devaluing rates of the currencies based on printing rates.

There's absolutely no correlation, and you know it. It's much more complex than "printing X amount of money leads to y drop in the exchange rate." Moves in exchange rates have to do with expectations of future exchange rates, monetary policy regimes, expected inflation, interest rates, states of the economy, and much else.

For instance, the Fed has "printed" over $3 trillion, but the dollar has been appreciating. Why? Because the U.S. economy is improving, whereas the rest of the world is doing terribly. You'll note, also, that "money" printing was hardly inflationary--you can attribute about a 50-basis-point uptick in inflation to QE, but that's it, and inflation is still low.

Oh please, don't even pretend printing more money than is destroyed raises the value of any currency.

I never once said that--those words literally are nowhere in my post, nor did I suggest any type of causation of that order. I said that it was much more complex than you are suggesting, and that "money printing" need not lead to a *depreciating* currency.

It would be helpful for you to abandon, just for a moment, this dogmatic thinking of "money printing raises inflation and destroys the currency and is this ipso facto bad" and consider that we actually have six years of data on this. They don't say what you think they say.

I didn't say all inflation destroys currency, a certain level of inflation is actually necessary.

You said money printing depreciates a currency--the mechanism through which it does that is excess inflation.

So, thank you for admitting that your initial argument was faulty, and that plenty of other factors bear on exchange rates than "money printing," which has actually been rather negligent in terms of its actual impacts over the past few years.

Riiight... theres no correlation...

http://en.wikipedia.org...

That's a complete distortion. Zimbabwe had a debt nominally denominated in a different currency, and couldn't borrow in order to finance deficits, so it printed literally in order to finance government outlays. The U.S. doesn't do that. The Fed is statutorily prohibited from directly purchasing U.S. Treasury debt.

Make sure you know what you're talking about before you throw the most easily refuted arguments against the wall, yearning that they'll stick.

Yo dude i'm agreeing with you yo.

How? I said money printing doesn't necessarily lead to inflation, and your response was "Zimbabwe." How is that agreeing with me? You seem to be agreeing with me only after I refute your facile points, which is at least a good starting point.
~ResponsiblyIrresponsible

DDO's Economics Messiah
WillYouMarryMe
Posts: 247
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3/15/2015 9:55:31 PM
Posted: 1 year ago
At 3/14/2015 2:35:37 PM, ResponsiblyIrresponsible wrote:
At 3/14/2015 2:30:13 PM, YYW wrote:
At 3/14/2015 2:24:08 PM, Ore_Ele wrote:
At 3/14/2015 12:58:10 PM, YYW wrote:
The Euro is nearly parallel to the dollar in value. I think it's like 1.06 to 1.00. Who thinks that the Euro will surpass the dollar? How do you guys feel about that?

The Euro is already past the dollar. 1 Euro = 1.05 USD. Truth is that is has always been more than the dollar and is actually falling in value. Just last year is was almost 1.40 USD.

lol sorry... I meant that the other way around.

Who thinks the dollar will pass the Euro?

I think it's likely judging by the current trajectory of the U.S. economy relative to the eurozone. The U.S. is looking to normalizing interest rates later this year as the economic outlook improves, and the eurozone is still in the gutter, and the ECB is (finally) doing something about it, and is purchasing bonds at a rate of about 60 billion euros per month until September 2016, though there's reason to think they'll continue past that point. Should they continue, the euro would continue to depreciate relative to the dollar--and perhaps the dollar would "pass" it, though I tend to think that the focus ought to be more on relative movement than the actual exchange rate value.

Econ AMA question:

who decides how much a dollar is worth...?
ResponsiblyIrresponsible
Posts: 12,398
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3/15/2015 10:00:22 PM
Posted: 1 year ago
At 3/15/2015 9:55:31 PM, WillYouMarryMe wrote:
At 3/14/2015 2:35:37 PM, ResponsiblyIrresponsible wrote:
At 3/14/2015 2:30:13 PM, YYW wrote:
At 3/14/2015 2:24:08 PM, Ore_Ele wrote:
At 3/14/2015 12:58:10 PM, YYW wrote:
The Euro is nearly parallel to the dollar in value. I think it's like 1.06 to 1.00. Who thinks that the Euro will surpass the dollar? How do you guys feel about that?

The Euro is already past the dollar. 1 Euro = 1.05 USD. Truth is that is has always been more than the dollar and is actually falling in value. Just last year is was almost 1.40 USD.

lol sorry... I meant that the other way around.

Who thinks the dollar will pass the Euro?

I think it's likely judging by the current trajectory of the U.S. economy relative to the eurozone. The U.S. is looking to normalizing interest rates later this year as the economic outlook improves, and the eurozone is still in the gutter, and the ECB is (finally) doing something about it, and is purchasing bonds at a rate of about 60 billion euros per month until September 2016, though there's reason to think they'll continue past that point. Should they continue, the euro would continue to depreciate relative to the dollar--and perhaps the dollar would "pass" it, though I tend to think that the focus ought to be more on relative movement than the actual exchange rate value.

Econ AMA question:

who decides how much a dollar is worth...?

Supply and demand. Or, more specifically, currency traders.
~ResponsiblyIrresponsible

DDO's Economics Messiah
Bennett91
Posts: 4,227
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3/15/2015 10:06:38 PM
Posted: 1 year ago
At 3/14/2015 12:58:10 PM, YYW wrote:
The Euro is nearly parallel to the dollar in value. I think it's like 1.06 to 1.00. Who thinks that the Euro will surpass the dollar? How do you guys feel about that?

I don't know economics but this could be a potential good. Cheaper products from Europe may increase trade.

Also it's nice to know the economic power of the US is almost parallel to that of an entire industrialized continent lol
WillYouMarryMe
Posts: 247
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3/15/2015 11:29:11 PM
Posted: 1 year ago
At 3/15/2015 10:00:22 PM, ResponsiblyIrresponsible wrote:
At 3/15/2015 9:55:31 PM, WillYouMarryMe wrote:
At 3/14/2015 2:35:37 PM, ResponsiblyIrresponsible wrote:
At 3/14/2015 2:30:13 PM, YYW wrote:
At 3/14/2015 2:24:08 PM, Ore_Ele wrote:
At 3/14/2015 12:58:10 PM, YYW wrote:
The Euro is nearly parallel to the dollar in value. I think it's like 1.06 to 1.00. Who thinks that the Euro will surpass the dollar? How do you guys feel about that?

The Euro is already past the dollar. 1 Euro = 1.05 USD. Truth is that is has always been more than the dollar and is actually falling in value. Just last year is was almost 1.40 USD.

lol sorry... I meant that the other way around.

Who thinks the dollar will pass the Euro?

I think it's likely judging by the current trajectory of the U.S. economy relative to the eurozone. The U.S. is looking to normalizing interest rates later this year as the economic outlook improves, and the eurozone is still in the gutter, and the ECB is (finally) doing something about it, and is purchasing bonds at a rate of about 60 billion euros per month until September 2016, though there's reason to think they'll continue past that point. Should they continue, the euro would continue to depreciate relative to the dollar--and perhaps the dollar would "pass" it, though I tend to think that the focus ought to be more on relative movement than the actual exchange rate value.

Econ AMA question:

who decides how much a dollar is worth...?

Supply and demand. Or, more specifically, currency traders.

I meant like who determines these specific numbers you guys are talking about
ResponsiblyIrresponsible
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3/15/2015 11:31:21 PM
Posted: 1 year ago
At 3/15/2015 11:29:11 PM, WillYouMarryMe wrote:
At 3/15/2015 10:00:22 PM, ResponsiblyIrresponsible wrote:
At 3/15/2015 9:55:31 PM, WillYouMarryMe wrote:
At 3/14/2015 2:35:37 PM, ResponsiblyIrresponsible wrote:
At 3/14/2015 2:30:13 PM, YYW wrote:
At 3/14/2015 2:24:08 PM, Ore_Ele wrote:
At 3/14/2015 12:58:10 PM, YYW wrote:
The Euro is nearly parallel to the dollar in value. I think it's like 1.06 to 1.00. Who thinks that the Euro will surpass the dollar? How do you guys feel about that?

The Euro is already past the dollar. 1 Euro = 1.05 USD. Truth is that is has always been more than the dollar and is actually falling in value. Just last year is was almost 1.40 USD.

lol sorry... I meant that the other way around.

Who thinks the dollar will pass the Euro?

I think it's likely judging by the current trajectory of the U.S. economy relative to the eurozone. The U.S. is looking to normalizing interest rates later this year as the economic outlook improves, and the eurozone is still in the gutter, and the ECB is (finally) doing something about it, and is purchasing bonds at a rate of about 60 billion euros per month until September 2016, though there's reason to think they'll continue past that point. Should they continue, the euro would continue to depreciate relative to the dollar--and perhaps the dollar would "pass" it, though I tend to think that the focus ought to be more on relative movement than the actual exchange rate value.

Econ AMA question:

who decides how much a dollar is worth...?

Supply and demand. Or, more specifically, currency traders.

I meant like who determines these specific numbers you guys are talking about

Strangely, I don't know that one for certain.
~ResponsiblyIrresponsible

DDO's Economics Messiah
Dazz
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3/16/2015 9:19:10 AM
Posted: 1 year ago
At 3/15/2015 11:29:11 PM, WillYouMarryMe wrote:

who decides how much a dollar is worth...?

Supply and demand. Or, more specifically, currency traders.

I meant like who determines these specific numbers you guys are talking about

Are you asking about who decides that 1.6 dollar= 1 Euro?
Remove the "I want", remainder is the "peace". ~Al-Ghazali~
"This time will also pass", a dose to cure both; the excitement & the grievance. ~Ayaz~
WillYouMarryMe
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3/16/2015 9:42:55 AM
Posted: 1 year ago
At 3/16/2015 9:19:10 AM, Dazz wrote:
At 3/15/2015 11:29:11 PM, WillYouMarryMe wrote:

who decides how much a dollar is worth...?

Supply and demand. Or, more specifically, currency traders.

I meant like who determines these specific numbers you guys are talking about

Are you asking about who decides that 1.6 dollar= 1 Euro?

yuh
Dazz
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3/16/2015 10:24:14 AM
Posted: 1 year ago
At 3/16/2015 9:42:55 AM, WillYouMarryMe wrote:
At 3/16/2015 9:19:10 AM, Dazz wrote:
At 3/15/2015 11:29:11 PM, WillYouMarryMe wrote:

who decides how much a dollar is worth...?

Supply and demand. Or, more specifically, currency traders.

I meant like who determines these specific numbers you guys are talking about

Are you asking about who decides that 1.6 dollar= 1 Euro?

yuh

As stated earlier, key is S&D of both Euro and Dollar in the Forex Market (only State Banks and their selected dealers can trade there). Factors that affect S&D include trade (BoP), FDI, Capital Market condition, remittances, loan repayments etc.

If Euro's export to US are more than US export to European Union, then more US people would rush to buy Euro in order to do payment for their imports. For that they'd sell the Dollars. Thus more dollars would increase the money ($) supply in the market. The 1.6$=1 Euro means in the Forex market 16 dollars are ready to get sold, whereas only 10 Euros are available to get sold in exchange of dollars (little people are interested to sell Euro). In the end the transaction would take place at equilibrium price where 16 dollar would be exchanged with 10 Euros. Thus determining the exchange rate at stronger Euro in purchasing power terms.

But there is also a counter affect; once the Euro has been appreciated, US people find Euro expensive thus in the elasticity of imports they'd tend to import less. Thus decreasing the supply of Dollar in Forex market, that'd lead to appreciated Dollar (while keeping other things constant). This is floating system, based upon Free Market factors though no country has perfect floating but a managed one by the interference of IMF, world bank and Government.
Remove the "I want", remainder is the "peace". ~Al-Ghazali~
"This time will also pass", a dose to cure both; the excitement & the grievance. ~Ayaz~