Currency appreciation and depreciation

Currency depreciation is the loss of value of a country's currency with respect to one or more foreign reference currencies, typically in a floating exchange rate system in which no official currency value is maintained. Currency appreciation in the same context is an increase in the value of the currency. Short-term changes in the value of a currency are reflected in changes in the exchange rate.^[1]^[2]^[3]^[4]

There is no optimal value for a currency.^[5] High and low values have tradeoffs, along with distributional consequences for different groups.^[6]^[5]

^ "The Impact of falling exchange rate | Economics Help". www.economicshelp.org. Retrieved July 11, 2016.
^ Krugman, Paul. "International Economics - Theory and Policy - Chapter 13 - Exchange Ratesand the ForeignExchange Market: An Asset Approach" (PDF). eml.berkeley.edu.
^ "Currency Appreciation and Depreciation | Encyclopedia.com". www.encyclopedia.com. Retrieved May 30, 2020.
^ "currency appreciation". TheFreeDictionary.com. Retrieved May 30, 2020.
^ ^a ^b Frieden, Jeffry (2008). "Globalization and exchange rate policy". In Zedillo, Ernesto (ed.). The Future of Globalization. Routledge. doi:10.4324/9780203946527. ISBN 978-0-203-94652-7. Archived from the original on January 3, 2022. Retrieved January 3, 2022.
^ Broz, J. Lawrence; Frieden, Jeffry A. (2001). "The Political Economy of International Monetary Relations". Annual Review of Political Science. 4 (1): 317–343. doi:10.1146/annurev.polisci.4.1.317. ISSN 1094-2939.

[1] "The Impact of falling exchange rate | Economics Help". www.economicshelp.org. Retrieved July 11, 2016.

[2] Krugman, Paul. "International Economics - Theory and Policy - Chapter 13 - Exchange Ratesand the ForeignExchange Market: An Asset Approach" (PDF). eml.berkeley.edu.

[:0-3] "Currency Appreciation and Depreciation | Encyclopedia.com". www.encyclopedia.com. Retrieved May 30, 2020.

[4] "currency appreciation". TheFreeDictionary.com. Retrieved May 30, 2020.

[:1-5] Frieden, Jeffry (2008). "Globalization and exchange rate policy". In Zedillo, Ernesto (ed.). The Future of Globalization. Routledge. doi:10.4324/9780203946527. ISBN 978-0-203-94652-7. Archived from the original on January 3, 2022. Retrieved January 3, 2022.

[:10-6] Broz, J. Lawrence; Frieden, Jeffry A. (2001). "The Political Economy of International Monetary Relations". Annual Review of Political Science. 4 (1): 317–343. doi:10.1146/annurev.polisci.4.1.317. ISSN 1094-2939.

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