what does a strong weak dollar mean? how can I see if its strong or weak?
In: 150
We typically have inflation in this country and over time that weakens the value of the dollar. 100 years ago you might have been able to buy a loaf of bread for, I don’t know, 5 cents, and now it costs $2. That is the weakening dollar. As long as there is inflation in the long term the dollar will be worth less and less.
Talking about the strong dollar is usually in regards to other currencies today. You could go to say Africa and your dollar would buy a lot more than you can here in the U.S. since our currency is strong relative to theirs.
Long term though all currencies are declining in value as long as there is inflation. So the Euro of today will not buy as much as a Euro 100 years from now.
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