Topic: Off Economic phenomenon. (Read 489 times)

Currency depreciation can result from factors like inflation, political instability, trade imbalances, and national debts. When countries have to face this problem, they usually have to do something drastic. These steps might include raising interest rates, decreasing government expenditure, and applying economic reforms. Although certain countries may deal with currency depreciation and high inflation rates efficiently, the difficulties could be intense and require major actions sometimes. To maintain a high quality of living for their people, nations should manage their economies properly and strive for stability.
In order to successfully address economic challenges, a combination of fiscal and monetary policies could be adopted, along with paying attention to the root structural problems in the economy. Knowledge about the factors influencing the decline of currency value and the rise in inflation, as well as the correct actions that should be undertaken, is indispensable for any country that seeks to maintain the prosperity and welfare of its inhabitants.

I have come to realise a long time ago that dollar is not the only factor that determines the prices of goods and services in a country. In a country where there are no agencies monitoring the prices of commodities in that country,  whosalers, retailers (especially middle men in the chains of distribution) can manipulate the prices of commodities and services and still make it look like it is the fault of the government. Maybe they are right, it is partly the fault of the government because they have failed to properly monitor what the business men do in  their countries. Most times,  these business men hoard goods, thereby causing artificial Scarcity so the people will pay huge amounts to get them since the commodities are scarce.

The difference in the present economic situation in countries will depend solely on how the government handles the situation and the policies put in place to ensure people do not suffer unduly.

I agree, especially on the last thing that you said, it's because the change in price for the currencies are also normal and this is what we called as fluctuations or volatility. Even the price of other goods can experience it too. Maybe if there is a major change in their price, that must be the time for us to be suspicious and think that the rates have officially changed and one of the cause of it is either the currencies value have increased or decreased, or it was the other way around, and this can be applied for quite some time.

It is still possible for us to take advantage of the price differences/change. Same principles can we apply here in crypto like obtaining/buying them at lows and then exchanging/selling them at highs.

There can be several factors leading to a currency depreciation, including high inflation rates, political instability, trade deficits, and high levels of national debt. In order to address this issue, countries often need to implement policies to stabilize their currency and control inflation. This can involve measures such as increasing interest rates, reducing government spending, and implementing reforms to improve the economy.

In my country, we have also experienced periods of currency depreciation and high inflation. In some cases, the government has been able to implement successful policies to stabilize the currency and bring inflation under control. However, in other cases, the situation has been more difficult to resolve and has required more drastic measures.

Overall, it is important for countries to carefully manage their economies and work towards stability in order to protect the standard of living for their citizens. It may require a combination of fiscal and monetary policies, as well as addressing underlying structural issues in the economy.

Having incompetent leaders has a big impact on the inflation rate. Because of his various incompetent decisions which have a direct impact on the country's economy. As happened in Argentina, where the country faced inflation and stagnant economic growth, this caused inflation in the country to increase to 250%, which weakened their currency and paralyzed the economy. Even though Argentina was once one of the 10 richest countries in the world, now they have fallen and become a poor country. This is why it is important to be able to choose competent leaders, because it is very crucial to the development of a country.

The prices of your country's goods and services aren't necessarily bound by the strength of the dollar. So the rise and fall of your local currency against the dollar doesn't necessarily determine the changes in the prices of your goods and services. The strength of your currency, of course, will have an effect on the affordability of the goods and services, but it isn't like you can take a look at the forex exchange charts now and then you go to the market right after to check how the changes reflect on the prices.

The status of a country depends on the contributions of the government and its people, when the economy goes down, it's both people's fault, not just one person's. People blame the government for only being corrupt and not paying attention to people's lives and the domestic economy. Meanwhile, people find ways to avoid taxes because they think the government does not help but wants to tax them. Since then, the economic situation has become increasingly worse because everyone selfishly thinks poorly of others and only cares about themselves.

Like you, you always say you want the country to develop and have a strong economy, but have you paid enough taxes and strictly complied with the law? None of us are very good at it, including me, and we like to blame the government. The fault is everyone's, don't just blame the government or the people and think you are innocent.

That is a sad reality, but who is to be blamed for that? I guess the governments and those who are in power and are misusing their powers by filling their pockets with the money they get from within their countries and then borrowing from other countries for development and other purposes. That is completely wrong but what can be done at the end of the day?


Such countries need to increase the production of goods within the country so that they can import goods as well to make the economy better. I'm pretty sure that any country in the world will have at least something to produce that they can export to get some funds in return for their economy.


Who doesn't want that?  Every citizen of a third-world or developing country would want their country to prosper and get out of all the bad economic situations so that they can live peacefully without any problems.

we cannot equate the economic conditions of each country, because political conditions, leaders' policies, and many other factors can influence the conditions of a country. for example, my country and its neighboring country, even though they are in the same region, the conditions of the two countries are very different, one is a developed country and one is a developing country. this is because their country's leaders are better at managing the country and are good at diplomacy, so it can provide economic benefits to their country.

but fortunately our country's economy has developed significantly, this is because our president has adopted appropriate policies and is able to read future economic opportunities and can provide added value through managing the resources that our country has. so maybe your country can imitate the steps taken by my country so that it can advance your economy.

Most times when their is change in government it really affect the economic aspect of the country as you said, many countries have suffered this because most new presidents are clueless instead concentrating on building a good legacy towards enhancing and setting a way of good economic system, they will be busy chasing shadows, am not against any new government fighting corruption in a transparent way but this should not make the leaders and his economic deviate from the main thing which is making economic policies that will strengthen the country economically to withstand inflation to an extent when it occurs.

It is sad to say that this is not only the situation in your country but many other countries are going through the same situation.
Many small countries have almost reached the point of default due to borrowing from developed countries.

The currency of debtor countries does not have the same value as the currency of developed countries. When the value of a country's currency falls, it has to buy goods from other countries at high prices, and when goods are imported at high prices, they are sold at high prices in the country due to which inflation rises rapidly.

Therefore, if any country wants to increase the value of its currency, it has to get rid of debt, which seems almost impossible considering the current situation.
I sincerely want my country to develop and not get into more debt and I believe that the people of every country want the same.

It's pretty normal, a thing that happens to all tourist centers!

You have tons of money entering the economy but you also have demand for goods, yeah you get wealthy but the demand and people paying even with increased prices for the stuff will drive up inflation, that's why hot tourist spots are quite expensive compared to the rest of the country even when it comes to Europe or the US, and that's also the reason there is no escaping this.

More tourists more need for housing, more tourists more profits, more income from rent, higher prices for houses!
More demand for food, but not enough supply, merchants know they will sell it even if they add 20% cause there is demand, higher prices!
Higher prices mean people demanding more for their jobs, increased prices again!
And it will not stop until a balance is achieved!

You exactly describe the situation that exists in my country. USD was rising, the price of food and everything was rising as well and then soon after the start of the war between Russia and Ukraine, local currency to USD exchange rate significantly went down and people became happy, the national bank even had to do something to make our local currency little bit weaker because it was getting too strong against USD. This happened because many rich Russians and Ukrainians flew to my country and they brought lots of dollars with them, this resulted in increased USD income in our country and local currency becoming very strong but this didn't cause a fall in prices of food and other things, quite opposite happened and absolutely everything become terribly expensive. This happened because we are an importer country (I assume your country will be an importer country) and demand increased, so high demand resulted in a price spike and for a bonus, since there is a monopoly and corruption on things like this, distributors that import food and other goods, decided to significantly increase prices and they are profiting a lot.

Apart from the fact that you're specific that you did answers from other countries citizens, I'm also from same country and perhaps I totally understand the current economic situation of the nation.

The current economic situation has been very very poor to the extent that it cannot be changed in just a few decisions but has to go through a lot to be normal again. The past governments of the country ruled the nation in a selfish manner that has lead to the high inflation of goods and services in the country and perhaps for it to be corrected it must go through some work which requires time, since the incubate government are working on bringing down the inflation rate the no matter the reduction in dollar rate it's expected that goods and services will go high in the first period of policy changes before it sets to fall for good.

This has lead our incubate president to make some announcements few times ago that they are working of inflation and perhaps the citizens will have to bear with them for some time before the price of goods and services will set to reduce. Thous he gave an example that when a is turn off for the first time it uses the same energy to rotate meanwhile it's off already so it will take some time to reduce and turn off permanently and is how the inflation of goods and services will take a little time before it will set to reduce to a better level.
I hope with this example you will understand better.

Which brings a recession and it is equally bad. What you are saying is:

"We can cure this cancer if we kill the patient. No patient, no sickness to cure."

Japan might have no inflation, it is because it is already a dead economy.

Yes we can cure the inflation if we kill the economy. Bravo Doc, you'll get the Nobel prize for this research.

Yeah, definitely!
You're forgetting that Japan has tried to fight deflation for decades and that finally seeing positive was a success story!
 

Nope!
https://tradingeconomics.com/greece/government-debt-to-gdp


Exactly my point as I said previously: If people don't spend no matter how much money you print you will have no inflation!

Averaged 0.8% but it is over 2% now. Do you think it will go down from there? Japan is an interesting case indeed though.


https://www.usdebtclock.org/world-debt-clock.html

Take a look at the public debt to gdp ratios. Japan is by far the leader with ~298%, the runner-up is Greece with ~226% and the third place belongs to Italy with ~171%.


This shit is crazy and trust me, you don't want to be Japan.

The aging population of Japan isn't helping either as older people don't buy the newest iphone or toyota very often. They use what they have till it breaks and Toyota's last to the grave  That huge pile of printed paper should bring huge trouble in the future if not today. When it does, it will be all fireworks.

Japan inflation

Inflation in Japan averaged 0.8% in the ten years!

Japan monetary mass


The monetary base double din the last 10 years and went 6 time sup in the last 20.

Bank can print one hundred quadrillion trillions and flood the amazon with cash, if nobody is using the extra cash to buy stuff but stores them in their accounts there will be no inflation.


Most? No, not even close!

I think a change of government and administrative reshuffling can be a contributing phenomenon to the economic situation of a country at any time, because a new government would try to tip the scale in their favour with new policies and systems.
While scrutinizing the former administration, they may create a lag and soonest, attention would be diverted to setting up panels or agencies that would require financing to function while other sectors of the economy will sit
idly waiting on outcomes of court cases and investigations ongoing.

Similar things happened in my country. Overall, the USD is just getting more and more valuable if measured against local fiat. However, sometimes there are temporary spikes which go way too high, and they are promptly followed by corrections. So, for example, from January to the end of February 2015, the USD went from being worth 15.6 UAH to 27.7 UAH. Then it dropped to 20.2 UAH by May of the same year, which is a drop similar to the one described by the op. Over the years, it went higher and lower occasionally, fluctuating between spikes and corrections. Maybe that's what's going on.