RE: 1 dollar stands firmly against 1 hryvnia. Why?
April 18, 2021 at 5:34 am
(This post was last modified: April 18, 2021 at 5:42 am by Anomalocaris.)
How is a strong currency necessarily good? If strong currency is good, why has the US been accusing China for 20 years of artificially keeping its currency weak to hurt the US?
Also, if your idea is to peg the Ukrainian currency to the dollar, do you think the exchange value of currency can be maintained by fiat over the long run if the currency is freely exchangeable? If it is not freely exchangeable, and so susceptible to exchange rates set by fiat, how does that help you in branching out to Europe?
As to keeping the Ukrainian currency strong by pegging to the dollar, most economists thinks over the long ru. The dollar would be a relatively weak currency, because high debt level and low economic growth rate of the United States, the erosion of the dollar as the global reserve currency and main currency of international trade. Wouldn’t it be better to peg it a basket of currencies?
Also, if your idea is to peg the Ukrainian currency to the dollar, do you think the exchange value of currency can be maintained by fiat over the long run if the currency is freely exchangeable? If it is not freely exchangeable, and so susceptible to exchange rates set by fiat, how does that help you in branching out to Europe?
As to keeping the Ukrainian currency strong by pegging to the dollar, most economists thinks over the long ru. The dollar would be a relatively weak currency, because high debt level and low economic growth rate of the United States, the erosion of the dollar as the global reserve currency and main currency of international trade. Wouldn’t it be better to peg it a basket of currencies?
