Viewpoints
Opinion

Purchasing Power and the International Demand for Dollars

Purchasing Power and the International Demand for Dollars
i viewfinder/Shutterstock
|Updated:
0:00
Commentary

Various factors are often perceived to be important in determining a currency rate of exchange. For instance, for some commentators, an increase in a government’s foreign debt is regarded as pointing to a likely deterioration in economic fundamentals ahead. This provides the rationale for the selling of the currency of concern.

Frank Shostak
Frank Shostak
Author
Frank Shostak, Ph.D., is an associated scholar of the Mises Institute. His consulting firm, Applied Austrian School Economics, provides in-depth assessments and reports of financial markets and global economies. He has taught at the University of Pretoria and the Graduate Business School at Witwatersrand University.