Why after all the money printed, USD keep getting stronger compared to GBP or EUR? Wouldn't that mean that it will keep getting stronger and suddenly crash soon?
So I have been observing GBP, EUR and USD and dollar and euro are now 1 to 1 which didn't happen for a long time (Probably to Russia/Ukraine things going on) but I don't get why GBP soon will be 1 to 1 to the dollar as well?
I am no expert in economics but from my understanding, it is quite worrying as such things didn't happen for more than 20 years.
Would that mean that currencies/markets will crash soon? or if not what could be the major change in the economy since GBP/EURO/USD will be all 1 to 1?
Read a book on econometrics just now and it seems quite interesting. But a lot of it are nonsense to me so I want to start from the beginning. Where should I start?
Fyi I still haven't declared my major right now but am leaning towards math, so you could say I have a relatively solid background in maths.
If you think of the whole world as a box, any new business is basically taking away business from other businesses or consumers are spending more. The total sum stays the same. The only way new wealth enters the system is when dollars get printed. Is my mental model correct? Or am I misinterpreting the definition of wealth?
I remember after 2008 unemployment was rampant, you couldn't even find a job at McDonalds. My country was full of NEETS from 2008 to 2018, now there are still NEETs but there are many job offers. Will the job market collapse in the end? Or the fact that there are still job available prove we are not ina recession?
I’m new to economics.
My understanding is that companies are now charging more for their products, using the excuse that they need to cover additional costs caused by inflation.
My sense is that some companies are seeing this an opportunity to price hike not only to cover inflation related costs, but also generate profits which exceed what they were making pre-pandemic.
Thus introducing more money into the system.
Thus causing inflation.
Am I correct here? And does that mean that companies have a responsibility to not simply see these inflationary conditions as a cash grab?