Comments on: Countries with high trade decifit shouldn't have low forex? http://www.myylt.com/2008/03/30/countries-with-high-trade-decifit-shouldnt-have-low-forex/ Discussion of Forex Trading and Currency Trading Sat, 19 May 2012 11:19:37 +0000 http://wordpress.org/?v=2.3.3 By: meg http://www.myylt.com/2008/03/30/countries-with-high-trade-decifit-shouldnt-have-low-forex/#comment-1620 meg Tue, 30 Nov 1999 00:00:00 +0000 http://www.myylt.com/2008/03/30/countries-with-high-trade-decifit-shouldnt-have-low-forex/#comment-1620 the exchange rate is determine by markets which make capital inflows and outflows match. This includes trade, investments, tourism, aid, and loans. Inflation happens in all countries and only if the difference in large would it have much effect on exchange rates in a years time. the exchange rate is determine by markets which make capital inflows and outflows match. This includes trade, investments, tourism, aid, and loans. Inflation happens in all countries and only if the difference in large would it have much effect on exchange rates in a years time.

]]> By: flying_eagle http://www.myylt.com/2008/03/30/countries-with-high-trade-decifit-shouldnt-have-low-forex/#comment-1621 flying_eagle Tue, 30 Nov 1999 00:00:00 +0000 http://www.myylt.com/2008/03/30/countries-with-high-trade-decifit-shouldnt-have-low-forex/#comment-1621 There are many other variables to consider other than forex flows. Yes you are right theoretically with EX<IM. 2nd point: Just have a look at the USA. Don't they have a trillion dollar debt? look at their dollar now. But there are also internal factors to consider like interest rates. 3rd point: could be internal factors like money supply, employment, interest rates, government. Look at China's currency. Isn't that "pegged" to a certain extent? There are many other variables to consider other than forex flows.

Yes you are right theoretically with EX<IM.

2nd point: Just have a look at the USA. Don't they have a trillion dollar debt? look at their dollar now. But there are also internal factors to consider like interest rates.

3rd point: could be internal factors like money supply, employment, interest rates, government. Look at China's currency. Isn't that "pegged" to a certain extent?

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