View Full Version : Money and economics


Thug4Life
04-07-03, 08:18 PM
I am not sure if this was rised before but any ways

few questions:
whats the relationship between a country money and the strength of its economy?

What does creating a new money note (higher curruncy or lower) indicate? and what does it mean if its in coins or notes!?

WHat does it mean (in an economical point of view) the change of a note into a newer one within the same govermental statuts (stable!)?

And Does only the gold deposit give the currency its strength or in terms of new world its connection with teh Dolar? or Euro?

How did The Euro get its status of power in terms of its value though it belongs to several countries not Just one sooo its vlue depends on what?


well these are few questions I need some one to enlight me with their answers
and thanx :)

Man of principl
04-07-03, 11:32 PM
whats the relationship between a country money and the strength of its economy?
ur question is not clear by coutnery mony but if you mean what is the relation between the mony in the economy i mean what people have it is as follows:

Well there is a relation between the mony and the economy of any countery.
The relation between the mony and the economy is that mony is used as tool to contorl the economy by two policy.

one is called monteary policy which opeartes through the use r control of the intereste rate and dsicounte rate.(will be explained later)

the second one is called financial policy which opeates through the control of the tax rate and goverment expenditure




What does creating a new money note (higher curruncy or lower) indicate? and what does it mean if its in coins or notes!?

well i am not sure of this but usualy the countery issue new notes
based on a liqudity purpose and based on people needs if they feel the need a higer currncy notes to facilitate the purchasing process instead of carrying too much papaer notes they carry less and vice versa

WHat does it mean (in an economical point of view) the change of a note into a newer one within the same govermental statuts (stable!)?
i will check for you in this question coz i dont know the answer.



And Does only the gold deposit give the currency its strength or in terms of new world its connection with teh Dolar? or Euro?

the gold depsoite system disappeares since along time ago in 1970 i guess. now the currency streangth is affected and measure not by it is connection by euro or dollar but depends on it is economoy and it is imports and exports and the deman/supply for that currency in the international market (which is called floating rate).But why countires like sauid arabia link or fix its currency with dollar is that dollar is a strong currency coz the economy of it is strong so the KSA wanna linke it is profite she get from exporting oil in dollar coz she sell in dollar the oil..and wanna make sure it is value will be stable coz it is linked with dollar and each countery is fixing its currency not all but most of them with the countery that has more exporte and importe with .



How did The Euro get its status of power in terms of its value though it belongs to several countries not Just one sooo its vlue depends on what?

because the euro is fixed with each countreys currncy i mean germany and france they are fixing thier currency with the euro and using the euro as thier currency becasue the value is fixed and not only this..but it is hard coz each countrey should have fixed intereste rate and certain budget deficet and certain discounte rate and certain inflation rate othewise she will be kicked out coz it is currency no more equalll the value of the euro .

in other words europ is now a big country instead of speated coutnries to get benfit from this alliance in terms of strong economy for whole europ to compete with USA economy .

also i have posted an issue about the euro why it is issued and what are benfits and cost if you wanna know .look in the archive

this is is a breif explantion coz each questin u raised need to be answerd in detailled manner to make clear for you .

thank you

Thug4Life
12-07-03, 02:11 AM
that was informitive...thanx!
i might ask other questions related to this soon!