As investors scramble for bitcoin, they're finding that when it comes to virtual currencies, the rules of economics are less predominant than those of hackers.
Salman Khan of the Khan Academy explains what China's currency situation means for U.S. consumption and how it affects the entire U.S. and global economies.
Countries around the world keep their currencies pegged to the U.S. dollar, but how is this balance maintained? We saw in a previous video how a floating exchange rate can significantly affect international trade, but how is this achieved?
You've probably heard about the global controversy surrounding the Chinese currency: international leaders have criticized the Chinese government for keeping the value of the Yuan artificially low, because an artificially undervalued Yuan has serious implications for international trade.
When there is a disparity in interest rates between countries, investors have an opportunity to employ a currency trading strategy called the carry trade.
If you understand inflation, deflation is simply the flip side of the coin. In fact, sometimes it referred to as “negative inflation.”
Although inflation is not necessarily a bad thing for a growing economy, there have been numerous historical examples when inflation runs wild, a situation called hyperinflation. CNBC explains
In a good economy, gradual inflation is considered a good thing, but in tougher economic times, too much inflation is a serious problem. CNBC Explains.
While moderate inflation is actually a good thing for a healthy economy, inflation can also occur when the economy is stagnant.