The MMT Podcast with Patricia Pino & Christian Reilly cover image

#126 Dirk Ehnts: How Banks Create Money

The MMT Podcast with Patricia Pino & Christian Reilly

00:00

Canadian Dollar and Us Dollar - Why Do Prices Not Adjust?

Inflation rate does not depend on the exchange rate, he says. Companies are absorbing some of this for an exchange risk - but it's costly to change prices and consumers don't like it. So you can use financial markets too to solve that problem: 'You can lock in exchange rates now' In a developed country such as Canada, inflation is almost the same even though the exchange rate goes up and down by plus or minus 50 per cent over decades.

Transcript
Play full episode

The AI-powered Podcast Player

Save insights by tapping your headphones, chat with episodes, discover the best highlights - and more!
App store bannerPlay store banner
Get the app