currency appreciation growth, income, currency, relative

laurab

what's the logic behind currency appreciating due to lower relative income growth rates?

thanks is advance!

hassan

theCFAway Wrote:
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> what's the logic behind currency appreciating due
> to lower relative income growth rates?
>
> thanks is advance!


peeps in the other country with too much money to spend are buying all of your goods in ur country cuz their economy is not growing fast enough to quench their desires so there's more demand for ur currency..., therefore it goes up.

poor u have no money so u not going to buy any other country's goods, u can barely even buy urs..., so there's not enough supply of ur own currency and u r not demanding for the other country's currency cuz u dont want their goods..., u got no money!

WarrenB1

thanks this helps. i guess it always helps when you think of import/export

xilinx_altera

Wouldn't the currency depreciate if the growth rates are low?