Tags: By the numbers, Exchange Rates, Stuff
Politically the currency can have a big impact on the economy and the popularity of the government. But it is not something governments can do a lot about in the short term, unless they want to risk billions of dollars in currency speculation. Long-term policies that lead to better productivity can lead to a stronger currency, but in a way which doesn’t harm the export sector so much, as the increased productivity gives them competitive advantage. That is how you get a win-win.
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