Currencies

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...

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.The writer is chair of Rockefeller InternationalIn February of 1998, 25 years ago this month, I was in Bangkok, ground zero of the Asian financial crisis. The implosion of the Thai baht had triggered a serial meltdown of currencies and markets with protesters in the streets across the region and chaos spreading. As world leaders raced to slow the global contagion, Thailand and its neighbours had sunk into a depression.The Thai economy...