elias mazariegos
Member
What is good, right? Who does not want a strong national currency?
Well, it's not really like that. In the short term, this means that there will be less capital to develop business relationships, less national income and, finally, a slower rate of economic growth. However, it also slows down inflation and the inevitable rise in debt - which in the long term is good.
Alternatively, when interest rates are cut, all market participants can borrow more capital. Momentarily, a surplus is created in the supply of capital and the price of the currency falls. In the short term, this means an expansion in the companies, increased by the national expenses and the growth of the economy.
Comunidad
Well, it's not really like that. In the short term, this means that there will be less capital to develop business relationships, less national income and, finally, a slower rate of economic growth. However, it also slows down inflation and the inevitable rise in debt - which in the long term is good.
Alternatively, when interest rates are cut, all market participants can borrow more capital. Momentarily, a surplus is created in the supply of capital and the price of the currency falls. In the short term, this means an expansion in the companies, increased by the national expenses and the growth of the economy.
Comunidad
