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whowasthatmaskedman · 70-79, M
"Devaluing" a currency is specific to the value of one currency against another , or the exchange rate.
So how many pence sterling or Euros or Yuan you get for your $US dollar for instance.
There are two ways this is set. First by the market, by supply and demand. Thats how most Western countires do it. Second by govt policy in a centralised economy, where the Govt controls the money supply and therefore the selling price of its own currency.
Thw Why is very complex there...But its usually tied to govt trade policy somehow,
So how many pence sterling or Euros or Yuan you get for your $US dollar for instance.
There are two ways this is set. First by the market, by supply and demand. Thats how most Western countires do it. Second by govt policy in a centralised economy, where the Govt controls the money supply and therefore the selling price of its own currency.
Thw Why is very complex there...But its usually tied to govt trade policy somehow,