Thomas Shogren, Chapter 11, Question 7

In this chapter I learned that the relative value of a countries currency is very important to imports and exports that a country makes, which can affect the countries defficit (or lack there of). If a currency is strong relative to other currencies then it is cheaper to import while more expensive to export. The opposite is true if a currency is weak. I never knew about the severe inflation in Argentina. Many people complain about the inflation in the United States, but compared to Argentina's inflation it is not even comparable. I was also surprised by the "soft" currency in East Germany. If you went to East Germany and exchanged your money, you had no say on what you could exchange it for and if you don't spend all of your money then you are basically giving money away.