🚀 go-pugleaf

On 30 Jun 2005 20:18:40 -0700, "TXZZ" <superoutland@aol.com> wrote:

>Yea how does the yen/dollar exchange rate affect pricing?  I mean,
>shouldnt the exchange rate instead be adjusted?

It is constantly being adjusted by market participants.

>ok, if you cant tell where Im going with this, for a hypothetical
>question, they always use examples like"the yen is 360 to the dollar,
>so you could by 3 books.  But now its only 120 to the dollar so you can
>only buy one book".  This sorta logic is used when discussing
>economics, but doesnt that just mean the dollar/yen exchange rate would
>be wrong?

Why would it be "wrong"?

-- Roy L

In article <1120187920.839147.79410@g43g2000cwa.googlegroups.com>, 
superoutland@aol.com says...
> Yea how does the yen/dollar exchange rate affect pricing?  I mean,
> shouldnt the exchange rate instead be adjusted?
> 
> 
> ok, if you cant tell where Im going with this, for a hypothetical
> question, they always use examples like"the yen is 360 to the dollar,
> so you could by 3 books.  But now its only 120 to the dollar so you can
> only buy one book".  This sorta logic is used when discussing
> economics, but doesnt that just mean the dollar/yen exchange rate would
> be wrong?
> 
> 
> 
> I supposed you dont where im going with this, but please try to answer
> the attempted question please.
> 
> 
Companies' pricing decisions take exchange rates into account, but it is 
only one of many factors.

Verno

<royls@telus.net> wrote in message news:42c4be4f.40409986@news.telus.net...
> On 30 Jun 2005 20:18:40 -0700, "TXZZ" <superoutland@aol.com> wrote:
>
>>Yea how does the yen/dollar exchange rate affect pricing?  I mean,
>>shouldnt the exchange rate instead be adjusted?
>
> It is constantly being adjusted by market participants.
>
>>ok, if you cant tell where Im going with this, for a hypothetical
>>question, they always use examples like"the yen is 360 to the dollar,
>>so you could by 3 books.  But now its only 120 to the dollar so you can
>>only buy one book".  This sorta logic is used when discussing
>>economics, but doesnt that just mean the dollar/yen exchange rate would
>>be wrong?
>
> Why would it be "wrong"?

Of course, there is no "wrong".

But the original poster's question does hint at a question that AFAICT 
economics hasn't been able to answer:  why exchange rates fail to normalize 
in terms of PPP even over the long haul.

>
> -- Roy L 

sinister wrote:
> <royls@telus.net> wrote in message news:42c4be4f.40409986@news.telus.net...
> 
>>On 30 Jun 2005 20:18:40 -0700, "TXZZ" <superoutland@aol.com> wrote:
>>
>>
>>>Yea how does the yen/dollar exchange rate affect pricing?  I mean,
>>>shouldnt the exchange rate instead be adjusted?
>>
>>It is constantly being adjusted by market participants.
>>
>>
>>>ok, if you cant tell where Im going with this, for a hypothetical
>>>question, they always use examples like"the yen is 360 to the dollar,
>>>so you could by 3 books.  But now its only 120 to the dollar so you can
>>>only buy one book".  This sorta logic is used when discussing
>>>economics, but doesnt that just mean the dollar/yen exchange rate would
>>>be wrong?
>>
>>Why would it be "wrong"?
> 
> 
> Of course, there is no "wrong".
> 
> But the original poster's question does hint at a question that AFAICT 
> economics hasn't been able to answer:  why exchange rates fail to normalize 
> in terms of PPP even over the long haul.

I thought the standard answer was that many forms of capital are not 
mobile, even over the long haul.  Things like a country's legal system 
and the average education of its participants affect the value of 
capital in an economy too, do they not?

-- 
Curt Fischer

"Curt Fischer" <tentrillion@gmail.NOSPAM.com> wrote in message
news:3il9pvFlu16bU1@individual.net...
> sinister wrote:
> > <royls@telus.net> wrote in message
news:42c4be4f.40409986@news.telus.net...
> >
> >>On 30 Jun 2005 20:18:40 -0700, "TXZZ" <superoutland@aol.com> wrote:
> >>
> >>
> >>>Yea how does the yen/dollar exchange rate affect pricing?  I mean,
> >>>shouldnt the exchange rate instead be adjusted?
> >>
> >>It is constantly being adjusted by market participants.
> >>
> >>
> >>>ok, if you cant tell where Im going with this, for a hypothetical
> >>>question, they always use examples like"the yen is 360 to the dollar,
> >>>so you could by 3 books.  But now its only 120 to the dollar so you can
> >>>only buy one book".  This sorta logic is used when discussing
> >>>economics, but doesnt that just mean the dollar/yen exchange rate would
> >>>be wrong?
> >>
> >>Why would it be "wrong"?
> >
> >
> > Of course, there is no "wrong".
> >
> > But the original poster's question does hint at a question that AFAICT
> > economics hasn't been able to answer:  why exchange rates fail to
normalize
> > in terms of PPP even over the long haul.
>
> I thought the standard answer was that many forms of capital are not
> mobile, even over the long haul.  Things like a country's legal system
> and the average education of its participants affect the value of
> capital in an economy too, do they not?
>
> --
> Curt Fischer


Do not forget that governments can influence money supply thus affecting
exchange rates.

"Michael Angelopoulos" <mangelopoulos@hotmail.com> wrote in message 
news:datid4$irb$1@ulysses.noc.ntua.gr...
>
> "Curt Fischer" <tentrillion@gmail.NOSPAM.com> wrote in message
> news:3il9pvFlu16bU1@individual.net...
>> sinister wrote:
>> > <royls@telus.net> wrote in message
> news:42c4be4f.40409986@news.telus.net...
>> >
>> >>On 30 Jun 2005 20:18:40 -0700, "TXZZ" <superoutland@aol.com> wrote:
>> >>
>> >>
>> >>>Yea how does the yen/dollar exchange rate affect pricing?  I mean,
>> >>>shouldnt the exchange rate instead be adjusted?
>> >>
>> >>It is constantly being adjusted by market participants.
>> >>
>> >>
>> >>>ok, if you cant tell where Im going with this, for a hypothetical
>> >>>question, they always use examples like"the yen is 360 to the dollar,
>> >>>so you could by 3 books.  But now its only 120 to the dollar so you can
>> >>>only buy one book".  This sorta logic is used when discussing
>> >>>economics, but doesnt that just mean the dollar/yen exchange rate would
>> >>>be wrong?
>> >>
>> >>Why would it be "wrong"?
>> >
>> >
>> > Of course, there is no "wrong".
>> >
>> > But the original poster's question does hint at a question that AFAICT
>> > economics hasn't been able to answer:  why exchange rates fail to
> normalize
>> > in terms of PPP even over the long haul.
>>
>> I thought the standard answer was that many forms of capital are not
>> mobile, even over the long haul.  Things like a country's legal system
>> and the average education of its participants affect the value of
>> capital in an economy too, do they not?
>>


The Japanese must have oil.  They are not great friends
with Russia.  They must get dollars to pay the Middle East
and the Alaska North slope for oil.  The dollar is king
because of the control of oil.  That does not ever change
for Japan, but it does for China and Russia.

The Japanese are well fed and cared for birds in a
cage.  That is not intended as an insult.  It just IS.
They pusued the great war for oil and nothing has
really changed.  They still control no oil.  I am
not bragging or beating the chest.  I don't think it
right.  But that is the way the current world is and
it why the dollar has not gone completely into the
toilet.  We are on the oil standard.

-- 
"I know no safe depository of the ultimate powers
of society but the people themselves; and
if we think them not enlightened enough to
exercise their control with a wholesome
discretion, the remedy is not to take it from
them, but to inform their discretion by
education." - Thomas Jefferson
http://GreaterVoice.org