If a country is an attractive place for foreigners to invest their funds, then that country will have a relatively high exchange rate. If it's an unattractive place, it will have a relatively low exchange rate. Those are the fundamentals that determine the exchange rate in a floating exchange rate system.
I think that educators are in sales. Essentially, what you are doing is making an exchange with your class. You're saying, 'Give me your attention. In exchange, I'll give you something else.' The cash register is not ringing. It's not denominated in dollars or cents or euros, but it is a form of sales in a way. It is an exchange.
If the objective exchange-value of money must always be linked with a pre-existing market exchange-ratio between money and other economic goods (since otherwise individuals would not be in a position to estimate the value of the money), it follows that an object cannot be used as money unless, at the moment when its use as money begins, it already possesses an objective exchange-value based on some other use.
Ludwig von Mises
The lesson for Asia is; if you have a central bank, have a floating exchange rate; if you want to have a fixed exchange rate, abolish your central bank and adopt a currency board instead. Either extreme; a fixed exchange rate through a currency board, but no central bank, or a central bank plus truly floating exchange rates; either of those is a tenable arrangement. But a pegged exchange rate with a central bank is a recipe for trouble.
Before it was usual to acquire goods in the market, not for personal consumption, but simply in order to exchange them again for the goods that were really wanted, each individual commodity was only accredited with that value given by the subjective valuations based on its direct utility. It was not until it became customary to acquire certain goods merely in order to use them as media of exchange that people began to esteem them more highly than before, on account of this possibility of using them in indirect exchange. The individual valued them in the first place because they were useful in the ordinary sense, and then additionally because they could be used as media of exchange. Both sorts of valuation are subject to the law of marginal utility.
Ludwig von Mises
Modern man has transformed himself into a commodity; he experiences his life energy as an investment with which he should make the highest profit, considering his position and the situation on the personality market. He is alienated from himself, from his fellow men and from nature. His main aim is profitable exchange of his skills, knowledge, and of himself, his "personality package" with others who are equally intent on a fair and profitable exchange. Life has no goal except the one to move, no principle except the one of fair exchange, no satisfaction except the one to consume.p97.
Most economic histories of the "world" not only omit most extra-European production and exchange (even most of that outside West Europe or even northwest Europe); they neglect the participation of the productive and exchange activities of extra-European countries in the European, not to say world, process of accumulation and development. Moreover, they disregard the part that these productive and exchange relations played in the developing world system.
Andre Gunder Frank
The objective exchange-value of money which rules in the market to-day is derived from yesterday's under the influence of the subjective valuations of the individuals frequenting the market, just as yesterday's in its turn was derived under the influence of subjective valuations from the objective exchange-value possessed by the money the day before yesterday. If in this way we continually go farther and farther back we must eventually arrive at a point where we no longer find any component in the objectIve exchange-value of money that arises from valuations based on the function of money as a common medium of exchange; where the value of money is nothing other than the value of an object that is useful in some other way than as money.
Ludwig von Mises
Be generous with your time and your resources and with giving credit and, especially, with your words. It's so much easier to be a critic than a celebrator. Always remember there is a human being on the other end of every exchange and behind every cultural artifact being critiqued. To understand and be understood, those are among life's greatest gifts, and every interaction is an opportunity to exchange them.
Selling concerns itself with the tricks and techniques of getting people to exchange their cash for your product. It is not concerned with the values that the exchange is all about. And it does not, as marketing invariable does, view the entire business process as consisting of a tightly integrated effort to discover, create, arouse and satisfy customer needs.
I am a diamond in the rut. A diamond to an untrained eye looks like a rock stone. So men will kick it around on the ground. It takes a man with an expert eye for fine Jewelry to notice its worth. Do not feel bad when men treat you like the little boys in Africa who gave away stones in exchange for candy. The hungry boys thought they were getting something better but had exchange wealth for a sugar high. Some men will do that. Exchange a valuable woman for the transient high of another. The boys didn't know better and so do some of these men. They don't know your worth.
The problem is that, in a world of floating exchange rates, as Italy was before the euro, if one country is subjected to a shock which requires it to cut wages, it cannot do so with a modern kind of control and regulation system. It is much easier to do it by letting the exchange rate change. Only one price has to change, instead of many.
The essence of intercultural education is the acquisition of empathy-the ability to see the world as others see it, and to allow for the possibility that others may see something we have failed to see, or may see it more accurately. The simple purpose of the exchange program...is to erode the culturally rooted mistrust that sets nations against one another. The exchange program is not a panacea but an avenue of hope....
J. William Fulbright
Modern bourgeois society with its relations of production, of exchange, and of property, a society that has conjured up such gigantic means of production and of exchange, is like the sorcerer, who is no longer able to control the powers of the nether world whom he has called up by his spells.
The Party's Object... ' The establishment of a system of society based upon the common ownership and democratic control of the means and instruments for producing and distributing wealth by and in the interests of the whole community'... was precise and legalistic. Correctness of definition and theory was all-important: in the minds of the men of new party, the failures of the existing organisations were simply the fruits of false theories. For the same reason, the Object did not mention the means of exchange. It was held that socialism, with free access to everything, there would be no exchange of goods; hence, to talk of the common ownership of the means of exchange was to show misunderstanding from the start.
If the secret core of potlatch is the reciprocity of exchange, why is this reciprocity not asserted directly, why does it assume the 'mystified' form of two consecutive acts each of which is staged as a free voluntary display of generosity? Here we encounter the paradoxes of forced choice, of freedom to do what is necessary, at its most elementary: I have to do freely what I am expected to do. (If, upon receiving a gift, I immediately return it to the giver, this direct circulation would amount to an extremely aggressive gesture of humiliation, it would signal that I refused the other's gifts - recall those embarrassing moments when elderly people forget and give us last year's present once again ...) ... the reciprocity of exchange is in itself thoroughly ambiguous; at its most fundamental, it is destructive of the social bond, it is the logic of revenge, tit for tat. To cover this aspect of exchange, to make it benevolent and pacific, one has to pretend that each person's gift is free and stands on its own. This brings us to potlatch as the 'pre-economy of the economy, ' its zero-level, that is, exchange as the reciprocal relation of two non-productive expenditures. If the gift belongs to Master and exchange to the Servant, potlatch is the paradoxical exchange between Masters. Potlach is simultaneously the zero-level of civility, the paradoxical point at which restrained civility and obscene consumption overlap, the point at which it is polite to behave impolitely.
Fairness means not to use fraud and trickery in the exchange of commodities and services and the exchange of feelings...Exploitation and manipulation produce boredom and triviality; they cripple man, and all factors that make man into a psychic cripple turn him also into a sadist or a destroyer.
There are two parts to the problem of measuring the objective exchange-value of money. First we have to obtain numerical demonstration of the fact of variations in the objective exchange-value of money; then the question must be decided whether it is possible to make a quantitative examination of the causes of particular price movements, with special reference to the question whether it would be possible to produce. So far as the first-named problem is concerned, it is self-evident that its solution must assume the existence of a good, or complex of goods, of unchanging objective exchange-value. The fact that such goods are inconceivable needs no further elucidation. If the one is proved to be soluble, then so also is the other; and proof of the insolubility of the one is also proof of the insolubility of the other.
Ludwig von Mises
In all proper relationships there is no sacrifice of anyone to anyone. An architect needs clients, but he does not subordinate his work to their wishes. They need him, but they do not order a house just to give him commission. Men exchange their work by free, mutual consent to mutual advantage when their personal interests agree and they both desire the exchange.
That day the U.S. announced that the dollar would be devalued by 10 percent. By switching the yen to a floating exchange rate, the Japanese currency appreciated, and a sufficient realignment in exchange rates was realized. Joint intervention in gold sales to prevent a steep rise in the price of gold, however, was not undertaken. That was a mistake.
.. is there not one true coin for which all things ought to exchange?- and that is wisdom; and only in exchange for this, and in company with this, is anything truly bought or sold, whether courage, temperance or justice. And is not all true virtue the companion of wisdom, no matter what fears or pleasures or other similar goods or evils may or may not attend her? But the virtue which is made up of these goods, when they are severed from wisdom and exchanged with one another, is a shadow of virtue only, nor is there any freedom or health or truth in her; but in the true exchange there is a purging away of all these things, and temperance, and justice, and courage, and wisdom herself, are a purgation of them.
Allah has purchased from the believers their lives and their properties in exchange for Paradise. They fight in Allah's way, and they kill and get killed. It is a promise binding on Him in the Torah, and the Gospel, and the Quran. And who is more true to his promise than Allah? So rejoice in making such an exchange-that is the supreme triumph.
In all proper relationships there is no sacrifice of anyone to anyone... Men exchange their work by free, mutual consent to mutual advantage when their personal interests agree and they both desire the exchange. If they do not desire it, they are not forced to deal with each other. They seek further. This is the only possible form of relationship between equals. Anything else is a relation of slave to master, or victim to executioner.
A product of your life and liberty is your property. Property is the fruit of your labor, the product of your time, energy, and talents. It is that part of nature that you turn to valuable use. And it is the property of others that is given to you by voluntary exchange and mutual consent. Two people who exchange property voluntarily are both better off or they wouldn't do it. Only they may rightfully make that decision for themselves.
But here again it must be observed that this is a matter of a variation brought about through dynamic agencies. The static state, for which the contention attributed to the adherents of the mechanical version of the Quantity Theory would be valid, is disturbed by the fact that the exchange-ratios between individual commodities are necessarily modified. Under certain conditions, the technique of the market may have the effect of extending this modification to the exchange-ratio between money and other economic goods also.
Ludwig von Mises
Such is the common process of marriage. A youth and maiden exchange meeting by chance, or brought together by artifice, exchange glances, reciprocate civilities, go home, and dream of one another. Having little to divert attention, or diversify thought, they find themselves uneasy when they are apart, and therefore conclude that they shall be happy together. They marry, and discover what nothing but voluntary blindness had before concealed; they wear out life in altercations, and charge nature with cruelty.
When individuals are exchanging present goods against future goods they do not take account in their valuations of Variations in the objective exchange-value of money. Lenders and borrowers are not in the habit of allowing for possible future fluctuations in the objective exchange-value of money.
Ludwig von Mises
I don't think I like the idea that you just control me, but you get to do anything you like.' 'Ah, but that's because you don't understand the power exchange. Note that I used the word exchange. Listen, there are as many different ways to practice BDSM as there are people who practice it. I like to play. I like to know that my lover will turn to me when she needs something. I'll want to protect you. And I like to give you what you need. It makes me feel good. It makes me feel necessary.
Applying criminal law to the exchange of bitcoin on behalf of ransomware victims would create a morally shocking result of re-victimizing a victim. All lawfully operating digital currency exchanges would thereafter refuse to exchange bitcoin for ransomware victims for fear of criminal culpability.
Before you start feeling bad about yourself for your debt, this would be a good moment to remind yourself that money doesn't exist-it's just a system of value exchange. That's it. Pure and simple. So, if you have debt, you've received value and you've not given the equivalent value back to the particular party in the exchange yet. That's all it means. It doesn't mean you're a bad person. It doesn't mean you're a screwup. You're not hopeless. You're not a mess. You simply have more value to give.
To be sure, the use of force by one party in a market transaction in order to improve his price was no invention of capitalism. Unequal exchange is an ancient practice. What was remarkable about capitalism as a historical system was the way in which this unequal exchange could be hidden; indeed, hidden so well that it is only after five hundred years of the operation of this mechanism that even the avowed opponents of the system have begun to unveil it systematically.
Money is different from all other commodities: other things being equal, more shoes, or more discoveries of oil or copper benefit society, since they help alleviate natural scarcity. But once a commodity is established as a money on the market, no more money at all is needed. Since the only use of money is for exchange and reckoning, more dollars or pounds or marks in circulation cannot confer a social benefit: they will simply dilute the exchange value of every existing dollar or pound or mark.
Of all the joint ventures in which we might engage, the most productive, in my view, is educational exchange. I have always had great difficulty-since the initiation of the Fulbright scholarships in 1946-in trying to find the words that would persuasively explain that educational exchange is not merely one of those nice but marginal activities in which we engage in international affairs, but rather, from the standpoint of future world peace and order, probably the most important and potentially rewarding of our foreign-policy activities.
J. William Fulbright
The marginal utility of money to any individual, i.e., the marginal utility derivable from the goods that can be obtained with the given quantity of money or that must be surrendered for the required money, presupposes a certain exchange-value of the money; so the latter cannot be derived from the former. 1 Those who have realized the significance of historically-transmitted values in the determination of the objective exchange-value of money will not find great difficulty in escaping from this apparently circular argument.
Ludwig von Mises
Money permits no deals except those to mutual benefit by the unforced judgment of the traders. Money demands of you the recognition that men must work for their own benefit, not for their own injury, for their gain, not their loss-the recognition that they are not beasts of burden, born to carry the weight of your misery-that you must offer them values, not wounds-that the common bond among men is not the exchange of suffering, but the exchange of goods.
Outside the firm, price movements direct production, which is co-ordinated through a series of exchange transactions on the market. Within a firm, these market transactions are eliminated and in place of the complicated market structure with exchange transactions is substituted the entrepreneur-co-ordinator, who directs production.
When a country has substituted credit money or fiat money for metallic money, because the legal equating of the over-issued paper and the metallic money sets in motion the mechanism described by Gresham's Law, it is often asserted that the balance of payments determines the rate of exchange. But this also is a quite inadequate explanation. The rate of exchange is determined by the purchasing power possessed by a unit of each kind of money.
Ludwig von Mises
We do not need to understand economics in order to experience the benefits of freedom of exchange and production. But we may very well need to understand economics in order to sustain and maintain the institutional framework that enables us to realize the benefits that flow from freedom of exchange and production.
Our whole culture is based on the appetite for buying, on the idea of a mutually favorable exchange. .... For the man an attractive girl - and for the woman an attractive man - are the prizes they are after. 'attractive' usually means a nice package of qualities which are popular and sought after on the personality market. What specifically makes a person attractive depends on the fashion of the time, physically as well as mentally. ... Two persons thus fall in love when they feel they have found the best object available on the market, considering the limitations of their own exchange values.
Internet becoming accessible everywhere, whether it was Wi-Fi at work, on your cell phone as you traveled. People had it at home with broadband. There was a big change.It used to be people used the Internet primarily at work, because that's where they had a good connection. Now they're using it at home. And the second big change is, they used it not just to get information, but to communicate with one another. And, so, it became not simply an information exchange, but a personal exchange, a communication mechanism.
If we disregard the exchange of present goods for future goods, and restrict our considerations for the time being to those cases in which the only exchanges are those between present goods and present money, we shall at once observe a fundamental difference between the effects of an isolated variation in a single commodity-price, emanating solely from the commodity side, and the effects of a variation in the exchange-ratio between money and other economic goods in general, emanating from the monetary side.
Ludwig von Mises
There is no shame here. The places where we still fear are simply the places we have yet to fully receive God's love. Only by his grace and in his love can we let our fear go. Let go and receive. Receive his dreams. Receive his love. It is an exchange of fear for desire. It is an exchange of death for life. There is no fear in love. And I can tell you this with certainty: God does not want you to live in fear. And he does want you to live. Don't be afraid. Just believe.
Let us consider the actual, worldly Jew -- not the Sabbath Jew, as Bauer does, but the everyday Jew. ... What is the worldly religion of the Jew? Huckstering. What is his worldly God? Money.. Money is the jealous god of Israel, in face of which no other god may exist. Money degrades all the gods of man -- and turns them into commodities. The bill of exchange is the real god of the Jew. His god is only an illusory bill of exchange. The chimerical nationality of the Jew is the nationality of the merchant, of the man of money in general.
An attempt is sometimes made to demonstrate the desirability of measures directed against speculation by reference to the fact that there are times when there is nobody in opposition to the bears in the foreign-exchange market so that they alone are able to determine the rate of exchange. That, of course, is not correct. Yet it must be noticed that speculation has a peculiar effect in the case of a currency whose progressive depreciation is to be expected while it is impossible to foresee when the depreciation will stop, if at all. While, in general, speculation reduces the gap between the highest and lowest prices without altering the average price-level, here, where the movement will presumably continue in the same direction, this naturally can not be the case. The effect of speculation here is to permit the fluctuation, which would otherwise proceed more uniformly, to proceed by fits and starts with the interposition of pauses.
Ludwig von Mises