| mchaza said: i dont get how the currency changes :D, because i could change the currency i would convert everything back down to how it was in the 1950s where everything was much lower in value and people earned less.. I rather carry less money then more money. |
a currency changes in value compared to other currencies. If a currency is in high demand, it will be higher valued and 'strong'. The implications of this are high prices for exports and cheaper imports. Currencies can be in demand for several reasons, such as natural resources, incoming tourism or money flowing inwards from in this case Japanese companies.
On the other hand currencies can be lower valued or 'weak', where they are not that much in demand, like how the £ is at the moment. This brings the benefit however of cheap exports, with high import prices. This can bring inflation, particularly if the economy in question by a lot of imports.
as I was always tought at school SPICED - Strong Pound Imports Cheaper Exports Dearer
