Exchange Rate Practice Part 1

[@denizacar9025]

Mr Welker, I believe I spotted an error. When the Japanese currency depreciates, the net exports/ current account would worse. The reason is that because imports are more expensive and exports are cheaper. It is important to note that in the SHORT RUN, the value of net exports would worsen. However in the LONG RUN, when the Martial Lerner condition is met where PEDx+PEDm is bigger than one, then the current account would start to improve. Economics is about ACCURACY.

[@sabarinair123]

great, helpful lecture. Please keep posting more of these, it really helps. Thanks :)

[@galahad2000]

Love his videos. But why isn't this an increase in the demand for dollars, and a corresponding increase in supply of Yuan, now that the US interest rate is relatively higher?

[@andrebohnstedt9740]

I believe it works both ways, but I also agree that in this particular situation, an increase in the demand for USD and a supply of Yen would be more logical

[@zajnaj]

awesome i finally understand the system gratz

[@MicBratsis]

Im hoping everything up was right between the start and 6:20 LOL

[@psychicopus]

i disagree with this guys teaching as well!...