NationStates Jolt Archive

http://nstracker.org/index.php?nation=parilisa

My economy is screwed up. Have a look for yourself.

Does anyone know what effects the exchange rate?

Exchange Rate is calculated with several formulas > take a looky here (http://www.thirdgeek.com/old/nseconomyformulae.xml) (page doesn't view well in Internet Explorer I found).

Ultimately what is good for your GDP is good for your Exchange Rate.

Because one has to remember what an Exchange Rate means...

A currency is under the same rule of supply and demand as much as any other commodity or good.
If I want to import a product from another country, I have to purchase currency from the bank of a certain exporting nation - which lows the supply and increases the demand of the product which is a nation's currency. If a leader orders for more money to be printed- the supply increases (called Hyperinflation in some extreme circumstances), and the overall worth of the currency goes down like any product's worth goes down with the overall abundance of it.

So Exportation is good for a nation's economy - Imports BAD.

Thanks, so what kind of choices should I be making in issues to help improve my exchange rate?

So Exportation is good for a nation's economy - Imports BAD.

What? Ignoring the fact that exportation isn't word, you cannot seriously be suggesting that all imports are bad? I hope that is just a simplification of a simplification, because otherwise you have got it very wrong.

Thanks, so what kind of choices should I be making in issues to help improve my exchange rate?

Generally all your NS economy stats will be improved by pro-business choices on issues. This works in theory for exchange rates as if your business have less restrictions they will perform better and so export more giving your currency more value. Generally the bad thing is not a low or high currency, but a rapidly fluctuating currency irl.

Keep in mind, what you see on off-site calculators such as that one isn't "official" and you are under no obligation to take them seriously.

What? Ignoring the fact that exportation isn't word, you cannot seriously be suggesting that all imports are bad? I hope that is just a simplification of a simplification, because otherwise you have got it very wrong.


It was a simplification ;)

And it should be a word.