Before, I didn't understand why with one dollar you could buy twice and more than with a SOL, after all these where both types of money only that they belonged to different countries. The same question applied to the EURO and how everything seemed more expensive in Europe than in Latin America. In the past, my train of thought had made me think this had to have something to do with the power the nation had. But how and who decided the exchange rate between these types of money. The purchasing power of a dollar bill against a Sol had to be defined by someone right?
(Specially, when the currencies are constantly chaining. )
When I thought this inquiry roller coaster was over I started questioning what was a countries purpose, since maybe, if I understood the WHY of what they did, every action performed would make more sense.
(Specially, when the currencies are constantly chaining. )
When I thought this inquiry roller coaster was over I started questioning what was a countries purpose, since maybe, if I understood the WHY of what they did, every action performed would make more sense.
Was it a competition to see who had the money of most value?
Or in more general terms: Where countries competing in the economy?
All these thoughts popped into my mind as I read the chapter, and as new vocabulary came up such as PPP, currencies, and exchange rates, concepts started clicking in my mind. I learned many important lessons and how countries are 100% dependent of each other, not only for trade of goods and services but because they rely in each other to GROW.