What the Trade Balance Means for a Currency's Purchasing Power

What the Trade Balance Means for a Currency’s Purchasing Power

Tags: Global Economy, Money and Banks

09/16/2020 Frank Shostak

Since the trade balance has nothing to do as such with either the supply of money or the demand for money, we can conclude that trade balances do not determine the purchasing power of money of respective countries.

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Original Article: “What the Trade Balance Means for a Currency’s Purchasing Power“.

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