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.