Capitol Tech U Doctoral Presentation - April 2024.pptx
My interest in value depreciation and appreciation
1. My interest in currency
depreciation and appreciation
By Austin
2. Table of contents
1. title
2. Brief introduction
3. floating exchange rate system 1
4. floating exchange rate regime 2
5. floating exchange rate regime 3
6. my ideas
7. why do currency appreciate
8. why do currency depreciate
9.
10.
3. Brief introduction
The depreciation of value can be simplified as the
same amount of one specific currency that once can
buy three pieces of candy but now can only buy half
piece of candy. On the contrary, when a currency
can no longer buy one piece of candy, but three
pieces of candy that means the value of the
currency has depreciated.
4. floating exchange rate system 1
In order to talk about currency appreciation and
depreciation, first, we need to learn of the regime
that it can happen in. The type of exchange rate
regime’s name is floating exchange. The floating
exchange allows money to change according
5. floating exchange rate system 2
The floating exchange regime allows a currency to
change according to the foreign exchange market.
The foreign exchange market can decide the
countries' currencies values that depends on it.
Without many reasonable question people decided
to leave. But there is still one possible answer, the
people were worried about the economcis The
money has been growing unreasonably fast, and
that is a sign of the country’s next few years
economic will drop abruptly. However, many people
did not seem to like the quedtion. buttercup
6. floating exchange rate system 3
The Bretton Woods system has made fixed currencies at
1946 and kept the currencies to the 1970s; however, in
1971, the US was no longer to satisfied with its currency
exchange at 1/35th
Of an ounce of gold, and decided to change, and that,
has made all the differences. Soon after the US’s act, an
agreement called the Smithsonian Agreement, most of
the world's countries also followed the act of the United
States. However, some countries, such as most of the
places that are near the ocean, fixed their currency to
the value of another currency, which has the slower
rates of growth and are called the fixed currency.
7. My ideas
Many things can cause the currencies to go up and
down, it can be the pressure from the other countries or
the country’s getting stronger or the country’s getting
weaker. One of the examples can be that Chinese
currency is growing quickly, partly is because of the
United States owns C1hina a lot of debts so they are
trying to make Chinese currency more valuable in order
to pay less.
8. Why do money appreciate?
The exports of one country is very good and is being
bought constantly.
The forces from other countries. Such as the US is
forcing the Chinese Yuan’s value to grow up suspiciously
fast because US owns China a pretty big debt.
If one country’s central bank can find benefits from
letting the country’s currency appreciate, the central bank
would encourage it.
9. Why do currency depreciate?
If a country’s central bank sees that if the act of letting
the currency depreciate and it could gain advantages
from it, the bank would encourage it.
10. What can people gain from
currency depreciation
Many people would fell in poverty and many people
wouldn’t even be able to meet their daily life needs.
If one country’s currency drops, the shoppers would
likely to spend less money and cause many shops to be
bankrupt.
11. What can the people gain from
currency appreciation
People would likely become richer.
