I have been reading posts on this forum and information from Investica about the economic implications of having a rapidly growing currency and that it can be negative and looked down on. I have a couple of questions:
1- Why would a country not want it's currency to be as highly valued as possible? The statement was made that finance ministers over the Euro might look down on such high recent gains. Why?
2- I have pieced together an idea of what the G7 is but why would a country be so concerned about what other countries throught about its currency? It would seem to me that every country would want it's currency to be as highly valued as possible and would not let other countries put pressure on them to keep the conversion on their currency down.
3- If there are benefits to not allowing a country's own currency to grow to rapidly, what are the benefits?
Thanks in advance for any education on this matter. I have always thought that higher is always better but I guess there must be some reasons why that isn't always the case.
1- Why would a country not want it's currency to be as highly valued as possible? The statement was made that finance ministers over the Euro might look down on such high recent gains. Why?
2- I have pieced together an idea of what the G7 is but why would a country be so concerned about what other countries throught about its currency? It would seem to me that every country would want it's currency to be as highly valued as possible and would not let other countries put pressure on them to keep the conversion on their currency down.
3- If there are benefits to not allowing a country's own currency to grow to rapidly, what are the benefits?
Thanks in advance for any education on this matter. I have always thought that higher is always better but I guess there must be some reasons why that isn't always the case.