Currencies

Currencies

U.S. Bureau of Labor Statistics

March 2023 | Vol. 12 / No. 6 PRICES & SPENDING By Andrew Alderman, Kevin M. Camp, and Erin Mandiak The value of a currency is an important determinant for prices in international trade. When the value of a currency changes, prices for goods traded using that currency can be affected. A currency appreciation (when the value increases over time) results in a lower effective price for imported goods; currency depreciation (when the value decreases over time) translates to higher import prices. By and large, firms across the world have...
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