#64 John T Harvey: Exchange Rate Theory - Is It As Horrifically Boring As It Sounds? (presentation)
The MMT Podcast with Patricia Pino & Christian Reilly
00:00
Challenging Currency Theories
This chapter scrutinizes the complexities of exchange rate theory through the lens of purchasing power parity, illustrating its inadequacies with real-world examples. It argues that traditional economic frameworks oversimplify the relationship between currency values and prices by neglecting the influence of financial markets. The discussion also contrasts Modern Monetary Theory with established views, emphasizing the role of central banks and the dynamics of currency trading.
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