Forum Archive Index - March 2000

Please note usage of the Forum is subject to the Terms & Conditions.

Messages by Date [	Next by Date	Previous by Date ]
Messages by Thread [	Next by Thread	Previous by Thread ]
Post to the Forum [	New message	Reply to this message ]

Printable version

Re: [sharechat] Macroeconomics and the US and NZ external deficits in proportion

From:	RIL <RIL99_99@yahoo.co.uk>
Date:	Sun, 19 Mar 2000 23:06:46 +1200

Hugh, this is rudimentary stuff. But I'll explain it anyway.

The exchange rate is set by supply and demand for the currency. NZ has
to transfer into global currency of payment ie USD. So downward pressure
on NZD if current a/c deficit.

US pays in own currency so no pressure on demand side to downwardly in-
fluence USD through their current account deficit.

Is this sufficient or do I have to go to another more basic level of
explanation.

----------------------------------------------------------------------------
http://www.sharechat.co.nz/          New Zealand's home for market investors
To remove yourself from this list, please us the form at
http://www.sharechat.co.nz/forum.html.

Messages by Date [	Next by Date:	Re: Re: [sharechat] Macro-economic issues RIL
	Previous by Date:	Re: [sharechat] INL shares kevin francis ]
Messages by Thread [	Next by Thread:	[sharechat] kak virus (Outlook Express users, please read) Will Bryant
	Previous by Thread:	[sharechat] Macroeconomics and the US and NZ external deficits in proportion hugh webber ]
Post to the Forum [	New message	Reply to this message ]