How can the value of a currency go up or down? Surely £1 will always be worth £1 and $1 will always be worth $1?

Question

How can the value of a currency go up or down? Surely £1 will always be worth £1 and $1 will always be worth $1?

In: Economics

Answer 1

Yes 1$ will always be 1$, but what you can buy with 1$ will not always be the same thing.
Suppose the value of your currency goes down halves, you’ll have to spend 2$ for what used to cost 1$.