• Sinistar@hexbear.net
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    8 months ago

    I believe that they do this because it’s beneficial for international trade.

    Having a weak currency facilitates other countries buying your products, so it’s useful for an export economy - but it prevents you from importing as easily. The opposite is true for having a strong currency, and this dynamic drives a lot of things like de-industrialization in strong currency countries and unequal exchange extracting wealth from weak currency ones.